Q4 Casualty/Liability Summary
Overall (Moderate)
Market conditions vary widely between local and international insurers. International insurers are reducing capacity and increasing pricing while local insurers remain focused on growth through the fulfilment of the capacity gap at competitive pricing.
Pricing (Flat)
Expiring pricing can be achieved in most cases.
Capacity (Ample) Capacity is sufficient as local insurers, focused on growth, are filling capacity gaps left by international insurers which have reduced their participation.
Underwriting (Prudent) Underwriting is stable. Underwriters are prudent but flexible, especially for well performing risks.
Limits (Flat) Expiring limits can be achieved in most cases. In some cases, additional limits are available.
Deductibles (Flat) Deductibles remain at zero or very low for most risks.
Coverages (Stable) Some insurers have clarified the treatment of Silent Cyber risk to exclude losses arising from cyber attacks.
A Look Ahead (Moderate) Current market conditions are expected to continue.
Q4 Directors and Officers Summary
Overall (Moderate)
Overall market conditions remain stable, with signs of pricing deceleration. International insurers (excluding Japanese local insurers) continue to increase rates for any risk not adjusted in the last renewal cycle. There is very limited appetite in the international D&O marketplace for new business for organizations who experienced negative impacts from COVID-19.
Pricing (+11-30%)
Price increases have decelerated but the environment remains challenging, especially for risks placed with international insurers.
Capacity (Ample) Capacity is sufficient for most risks, with some constraints for new business and industries severely affected by COVID-19.
Underwriting (Prudent) Underwriting is stable; however, detailed information is required - especially for industries severely affected by COVID-19.
Limits (Flat) Expiring limits can be achieved in most cases.
Deductibles (Flat) Expiring limits can be achieved in most cases.
Coverages (Restricting) Local insurers are introducing Cyber Exclusions and buyback endorsements.
A Look Ahead (Moderate) The market is expected to further stabilize once price adjustments have been made across the entire portfolio.
Q4 Trade Credit Summary
Overall (Soft)
Insurers are growth-focused in response to a historically low number of insolvencies. Rates and deductibles are decreasing, while appetite, capacity and limits are increasing.
Pricing (Down)
Rate reductions are available in most cases.
Capacity (Abundant) Appetite is strong and capacity is abundant.
Underwriting (Flexible) Underwriters are growth-focused and underwriting approaches are proactive and flexible.
Limits (Increasing) Large limits are available as needed.
Deductibles (Decreasing) Deductible reductions are available.
Coverages (Stable) Most risks are renewing with the same coverage terms as expiring.
A Look Ahead (Soft) The insolvency rate is expected to remain low as a result of financial support from public institutions such as guarantee associations. Therefore, market conditions are expected to remain favorable.
Q4 Cyber Summary
Overall (Challenging)
International insurers remain highly cautious, resulting in continued significant price increases and a tightening of coverages. Local insurers were offering more favorable treatment but are now transitioning to more conservative, stringent underwriting and pricing approaches.
Pricing (+11-30%)
Pricing remains challenged, with significant increases applying nearly across-the-board.
Capacity (Ample) Despite limited appetite and underwriting conservatism, Cyber market capacity remains stable.
Underwriting (Rigorous) Underwriting is rigorous and stringent, and extensive, detailed underwriting information is being required.
Limits (Decreasing) Insurers are looking carefully at limits deployed per risk and, in some cases, are imposing decreases.
Deductibles (Increasing) While in some cases, local insurers continue to offer low or even zero deductibles, there is a growing trend to impose deductible increases at renewal.
Coverages (Restricting) International insurers continue to impose coverage restrictions, and there is a growing trend amongst local insurers to also restrict coverage.
A Look Ahead (Challenging) Local market conditions are expected to continue to become more challenging as more local insurers adopt underwriting and pricing approaches similar to international insurers.
Q4 Property Summary
Overall (Challenging)
As insurers continue to focus on profitability, market conditions remain challenging, with rate increases, capacity constraints, and sub-limits being applied to Flood.
Pricing (+1-10%)
Pricing remains challenged, with rate increases imposed on most renewals.
Capacity (Constrained) Capacity constraints continue for Earthquake, and are now also being experienced for Flood.
Underwriting (Prudent) Underwriting is stable with some flexibility shown on well-performing risks. Underwriters are approaching Flood risk with more caution and conservatism.
Limits (Decreasing) There is a growing trend to reduce the Flood sub-limit.
Deductibles (Flat) Deductibles remain at zero or very low for most risks.
Coverages (Stable) Expiring coverages can be achieved in most cases.
A Look Ahead (Challenging) A continued insurer focus on improving loss ratios is expected and, as a result, current market conditions are likely to continue.
Singapore Market Dynamics
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