Q4 Automobile Summary
Overall (Moderate)
Market conditions remain stable despite unfavorable Auto portfolio performance for many insurers. Early engagement has proven helpful in achieving the best outcomes available.
Pricing (Flat)
Most placements are renewing flat; however, rate reductions can be achieved on some well-performing risks.
Capacity (Ample) Although the market is limited, capacity is generally sufficient.
Underwriting (Prudent) Insurers remain cautious; however, some are already demonstrating flexibility on Strikes, Riot and Civil Commotion cover.
Limits (Flat) Expiring limits can be achieved in most cases.
Deductibles (Flat) While insurers are generally not mandating deductible increases, insureds are increasingly exploring deductible options as a mechanism to help offset rate increases.
Coverages (Stable) Expiring coverages can be achieved in most cases.
A Look Ahead (Moderate) While current market conditions are expected to continue, fleet risk management and/or technology initiatives may become increasingly important to achieving favorable outcomes.
Q4 Cyber Summary
Overall (Challenging)
Market conditions are challenging due to elevated risks and losses, particularly related to ransomware. Large risks are experiencing the most challenging market conditions.
Pricing (>+30%)
Significant price adjustments are being applied nearly across-the-board.
Capacity (Constrained) Capacity is constrained as insurers remain cautious about frequency and severity of loss; some have withdrawn completely from this space.
Underwriting (Rigorous) Underwriting is stringent and rigorous, with extensive, detailed information required, particularly for higher risk industries.
Limits (Decreasing) Limit reductions have become common as insurers look to manage their exposure on any one risk.
Deductibles (Increasing) Deductible increases are common and vary widely based on industry, controls and claims activity.
Coverages (Restricting) Coverage restrictions are common and vary based industry and claims activity.
A Look Ahead (Challenging) Current market conditions are expected to continue.
Q4 Employers Liability/Workers Compensation Summary
Overall (Moderate)
Favorable underwriting results have led to a continued insurer focus on retention and profitable growth, which has served to maintain stable pricing and coverage.
Pricing (Flat)
Pricing is stable. Reductions can be achieved for well-performing risks.
Capacity (Abundant) Capacity is abundant.
Underwriting (Prudent) Despite budget pressures, underwriting remains conservative; however, underwriters are demonstrating some flexibility on well-performing risks.
Limits (Flat) Limits are established by compulsory statute.
Coverages (Stable) Coverage is mandated by the EC Ordinance, which recently revised levels of compensation and modified policy conditions related to extraordinary weather conditions.
A Look Ahead (Moderate) In lieu of price reductions, insurers may look to offer value-added services such as claims handling and work safety seminars.
Q4 Trade Credit Summary
Overall (Moderate)
Following the challenging market conditions of 2020 and early 2021, the market has stabilized, as losses from COVID-19 did not materialize as expected. Appetite has expanded, and improved coverage terms are available; however, modest price increases continue.
Pricing (+1-10%)
Uncertainty continues regarding the full impact of COVID-19 and as a result, price increases continue, but to a lesser extent than those imposed during the pandemic.
Capacity (Ample) Appetite for certain sectors has contracted but, in general, capacity remains sufficient.
Underwriting (Rigorous) Underwriting scrutiny is high. Extensive, detailed information is required prior to providing indications or quotes.
Limits (Flat) Limit acceptance is slowly improving from 2020, while limit utilization is being closely monitored by underwriters.
Deductibles (Flat) Expiring deductibles can be achieved in most cases. Any adjustments are often made to improve terms rather than to control exposure.
Coverages (Stable) Coverage remains stable with the exception of high-risk sectors, for which some restrictions are being imposed.
A Look Ahead (Moderate) There is general optimism regarding the credit risk market, which is expected to continue to stabilize and become more competitive.
Q4 Casualty/Liability Summary
Overall (Challenging)
Local risks are experiencing moderate market conditions while complex, capacity-driven risks are experiencing challenging conditions.
Pricing (+1-10%)
Flat to modest increases can be achieved for well-performing local risks, while complex and global programs are experiencing more significant increases.
Capacity (Constrained) Insurers are reluctant to deploy capacity at current pricing levels.
Underwriting (Prudent) Local insurers are demonstrating flexibility while international insurers are more stringent and rigorous in their underwriting approaches.
Limits (Flat) Expiring limits can be achieved in most cases.
Deductibles (Flat) While insurers are generally not mandating deductible increases, insureds are increasingly exploring deductible options as a mechanism to help offset rate increases.
Coverages (Stable) Coverages remain generally stable, with exclusions imposed on a risk-specific basis.
A Look Ahead (Moderate) Market conditions are expected to stabilize.
Q4 Directors and Officers Summary
Overall (Challenging)
Stable market conditions apply to lower risk businesses while complex, capacity-driven, or US listed risks are experiencing a more challenging environment.
Pricing (+11-30%)
Significant price increases are being imposed on most risks.
Capacity (Constrained) Insurers are leveraging capacity management strategies to limit exposure on any one risk. Some international insurers are reducing capacity on large and complex programs that had enjoyed robust capacity in the past.
Underwriting (Rigorous) Underwriting can be challenging, especially for China-based US-listed risks, driven mainly by political tensions and uncertainty surrounding the regulatory environment in China.
Limits (Flat) Expiring limits can be achieved in most cases, with the key exception of complex, capacity-driven risks where limit reductions are being imposed. In some cases, insureds are exploring limit options to help offset rising premium costs.
Deductibles (Flat) Expiring deductibles can be achieved in most cases.
Coverages (Stable) Insurers are restricting coverage for US IPO companies (limiting coverage to Side A only), and imposing Cyber and Insolvency Exclusions.
A Look Ahead (Moderate) Stabilization is expected as insurers eventually reach rate sufficiency following several cycles of significant rate increase.
Q4 Property Summary
Overall (Moderate)
Following a prolonged period of challenging market conditions, the trend has now eased. Rates are flat and some well-performing risks are experiencing modest reductions, as underwriting rigor softens and terms and conditions remain unchanged.
Pricing (Flat)
Pricing, on average, is flat, but varies widely based on risk performance and capacity required.
Capacity (Ample) Capacity is sufficient with the key exceptions of natural catastrophe-exposed risks, high-risk industries, and loss-active risks.
Underwriting (Prudent) Some growth-focused local insurers are demonstrating flexibility and openness while international insurers are more conservative and cautious.
Limits (Flat) Expiring limits can be achieved in most cases.
Deductibles (Flat) Deductibles are stable and generally renewing at expiring levels; however, insurers have appetite to reduce the deductible for an additional charge.
Coverages (Stable) Expiring coverages can be achieved in most cases.
A Look Ahead (Moderate) Current market conditions are expected to continue.
Singapore Market Dynamics
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