Q2 Automobile Summary
Overall (Moderate)
Market conditions remained stable in Q2 as portfolio performance was generally favorable in light of the pandemic's ongoing impact on driving behavior. High inflation in Thailand had a minimal effect on rates; however, portfolio reviews have been undertaken by insurers, some of which have opted to non-renew some poorly-performing risk types.
Pricing (Flat)
Pricing remained flat. Local market capacity was sufficient, so reinsurance market pricing had minimal impact.
Capacity (Abundant) Capacity has been abundant as Auto coverage is the predominant policy type in Thailand and virtually all insurers participate in the market.
Underwriting (Flexible) Competition has been healthy and underwriting has been flexible.
Limits (Flat) Expiring limits were achieved in most cases.
Deductibles (Flat) Expiring deductibles were achieved in most cases.
Coverages (Stable) Expiring coverages were achieved in most cases.
A Look Ahead (Moderate) Current market conditions are expected to continue. A deterioration of economic conditions may cause insureds to explore options.
Q2 Cyber Summary
Overall (Challenging)
Market conditions remained challenging in Q2, with significant rate increases, constrained capacity and limited insurer appetite.
Pricing (>+30%)
The pricing environment remained challenging, with double-digit price increases for most insureds, with complex risks experiencing the most significant impacts.
Capacity (Constrained) Capacity remained constrained, and lead insurers were very cautious in their capacity deployment.
Underwriting (Rigorous) Underwriting remained rigorous and stringent. Insurers required detailed and extensive underwriting information.
Limits (Decreased) Limits decreased in line with constrained capacity. In addition, insurers imposed further reductions on poorly-performing risks.
Deductibles (Increased) Deductible increases have been mandated as insurers look to limit their exposure.
Coverages (More Restrictive) Exclusions and limitations, particularly related to ransomware, have been applied.
A Look Ahead (Challenging) Current challenging market conditions are expected to continue, with insurers remaining conservative and cautious as cyber risk continues to increase.
Q2 Employers Liability/Workers Compensation Summary
Overall (Moderate)
Market conditions remained stable in Q2 with flat pricing, sufficient capacity and flexible underwriting.
Pricing (Flat)
Pricing was flat in Q2 as underwriters continued to follow tariff rate guidelines.
Capacity (Ample) Market capacity was generally sufficient.
Underwriting (Flexible) Detailed underwriting information was required; however, underwriters were relatively flexible on terms and conditions. Offshore risks remained a non-preferred risk type for most insurers.
Limits (Flat) Expiring limits were achieved in most cases.
Deductibles (Flat) Expiring deductibles were achieved in most cases.
Coverages (Stable) Expiring coverages were achieved in most cases.
A Look Ahead (Moderate) Current market conditions are expected to continue.
Q2 Trade Credit Summary
Overall (Moderate)
Market conditions continued to stabilize in Q2, though caution remained over potential ongoing impacts from the pandemic. Price increases were modest and underwriting guidelines remained consistent.
Pricing (+1-10%)
Despite growing competition, modest price increases were prevalent.
Capacity (Ample) Capacity became more constrained in Q2 but remained sufficient for most risks.
Underwriting (Prudent) Underwriting became more flexible in Q2, however underwriters remained cautious on certain risks, particularly those impacted by COVID-19.
Limits (Decreased) Insurers imposed limit reductions in some cases.
Deductibles (Flat) Expiring deductibles were achieved in most cases.
Coverages (Stable) Expiring coverages were achieved in most cases; however, they could be broadened in cases where insurers used coverage as a differentiator.
A Look Ahead (Moderate) Insurers are expected to remain cautious in relation to continued COVID-19 impacts and the geopolitical events in Eastern Europe, though this may be tempered by increased competition in the market.
Q2 Casualty/Liability Summary
Overall (Moderate)
Market conditions have remained stable, with flat pricing, consistent underwriting guidelines, "as is" renewal terms and conditions, and sufficient capacity.
Pricing (Flat)
Flat renewal pricing was achieved in most cases.
Capacity (Ample) Capacity remained stable in Q2 as insurers maintained their capacity management strategies. Capacity was sufficient for most risks.
Underwriting (Prudent) Underwriting remained conservative yet accommodating to terms and conditions requested by insureds.
Limits (Flat) Expiring limits were achieved in most cases.
Deductibles (Flat) Expiring deductibles were achieved in most cases.
Coverages (Stable) Coverage remained stable as risk quality and performance were steady in Q2.
A Look Ahead (Moderate) Current market conditions are expected to continue, although insurers are keeping a watchful eye on rising inflation and its potential market impacts.
Q2 Directors and Officers Summary
Overall (Moderate)
Market conditions became slightly more challenging in Q2.
Pricing (+1-10%)
Modest price increases continued, the extent of which was dependent on the insurer, risk type and industry.
Capacity (Ample) Capacity remained sufficient for most risks. Insurers were cautious in their capacity deployment for heavily COVID-impacted risks.
Underwriting (Prudent) Underwriting remained stable yet cautious, particularly related to ongoing impacts from COVID-19, cyber risk, and the geopolitical events in Eastern Europe.
Limits (Flat) Expiring limits were achieved in most cases.
Deductibles (Flat) Expiring deductibles were achieved in most cases.
Coverages (Stable) Expiring coverages were achieved in most cases.
A Look Ahead (Moderate) Current market conditions are expected to continue, with any changes happening gradually.
Q2 Property Summary
Overall (Challenging)
Market conditions remained challenging in Q2, driven by portfolio performance as well as inflation. Capacity remained limited for heavily-exposed risks such as plastic, paper, rubber and wood. Impacts from COVID-19 continued in Q2.
Pricing (+1-10%)
Rate increases continued in Q2 but were generally modest, depending on sector and risk performance.
Capacity (Constrained) Capacity further contracted and was constrained as insurers remained cautious.
Underwriting (Prudent) Underwriters remained prudent and required extensive underwriting information.
Limits (Flat) Expiring limits were achieved in most cases.
Deductibles (Flat) Expiring deductibles were achieved in most cases.
Coverages (Stable) Coverage was stable and expiring coverages were achieved in most cases.
A Look Ahead (Moderate) Current market conditions are expected to continue in the short run; however, insurers are closely monitoring inflation rates, which may impact on rates and insurer appetite later in the year.
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