Q4 Automobile Summary
Overall (Moderate)
As a result of favorable performance, and Office of Insurance Commission regulation, the market remains stable. Given the regulated nature of Auto in Thailand, insurers are offering additional services as differentiators.
Pricing (Flat)
Pricing is the tariff rate; it remains flat.
Capacity (Abundant) Capacity remains abundant in this space.
Underwriting (Flexible) With healthy competition in this space, underwriters are flexible and accommodating.
Limits (Flat) Expiring limits can be achieved in most cases.
Deductibles (Flat) Expiring deductibles can be achieved in most cases.
Coverages (Stable) Expiring coverages can be achieved in most cases.
A Look Ahead (Stable) Assuming no change in the tariff rate or coverage, current market conditions are expected to continue.
Q4 Cyber Summary
Overall (Challenging)
Market conditions are challenging as significant rate increases are imposed, insurer appetites are narrowing, and risk becomes more complex and volatile as cyber events continue around the world. However, awareness is growing and cyber security and controls are becoming a top priority for many organizations.
Pricing (>+30%)
Driven largely by ransomware claims and related business interruption, the pricing environment remains very challenging, especially for complex risks.
Capacity (Constrained) Capacity constraints continue as insurer appetite narrows.
Underwriting (Rigorous) Underwriters have become more selective and are requiring extensive, detailed underwriting information.
Limits (Decreasing) Limit decreases are being mandated as insurers look to limit their exposure.
Deductibles (Increasing) Deductible increases are being mandated as insurers look to limit their exposure.
Coverages (Restricting) Insurers are restricting coverages to limit their exposure.
A Look Ahead (Challenging) Challenging market conditions are expected to continue.
Q4 Employers Liability/Workers Compensation Summary
Overall (Moderate)
Market conditions remain stable, with flat pricing and “as expiring” renewal terms. The number of insurers writing this coverage line – and their appetite and available capacity - remains consistent.
Pricing (Flat)
In the absence of major claims, pricing remains flat.
Capacity (Abundant) Local insurers are able to support the capacity needs of this coverage line.
Underwriting (Flexible) Underwriting is stable. Underwriters are prudent but flexibility is applied as needed.
Limits (Flat) Underwriting guidelines have remained consistent and, as a result, expiring limits can be achieved in most cases.
Deductibles (Flat) Underwriting guidelines have remained consistent and, as a result, expiring deductibles can be achieved in most cases.
Coverages (Stable) Underwriting guidelines have remained consistent and, as a result, expiring coverages can be achieved in most cases.
A Look Ahead (Moderate) Current market conditions are expected to continue.
Q4 Trade Credit Summary
Overall (Challenging)
Market conditions have become challenging; insurers are imposing significant price increases, capacity is constrained, and underwriters are conducting limits reviews as some uncertainty continues regarding the ultimate impacts of COVID-19.
Pricing (+11-30%)
Significant prices increases are being mandated on most risks.
Capacity (Constrained) Capacity is constrained due to shifting risk appetite and conservative application of underwriting guidelines.
Underwriting (Rigorous) Underwriting has become more stringent and rigorous and appetite has narrowed.
Limits (Decreasing) Insurers are re-evaluating limits deployment and reducing limits were deemed necessary.
Deductibles (Flat) Expiring deductibles can be achieved for most placements; however, some higher risk placements are experiencing mandatory increases.
Coverages (Restricting) Coverages are tightening as insurers look to limit their exposure.
A Look Ahead (Moderate) As the economy continues to recover and COVID-related uncertainty subsides, the current challenging market conditions are expected to ease.
Q4 Casualty/Liability Summary
Overall (Moderate)
Market conditions are stable, with flat to modestly increased pricing, consistent renewal terms and conditions, and sufficient capacity.
Pricing (+1-10%)
Modest rate increases are the norm; however, flat renewals can be achieved on some high-quality, well-performing risks.
Capacity (Ample) Appetite and capacity remain stable and sufficient; 2021 treaty capacity remains available (in Q4).
Underwriting (Prudent) Underwriters are cautious, but information requests are routine.
Limits (Flat) Expiring limits can be achieved in most cases.
Deductibles (Flat) Given the favorable performance in this space, expiring deductibles can be achieved on most placements.
Coverages (Stable) As risk quality and performance has generally remained steady, coverage terms and conditions remain stable.
A Look Ahead (Moderate) Current market conditions are expected to continue.
Q4 Directors and Officers Summary
Overall (Moderate)
International insurers are demonstrating a preference to participate on excess layers, and, regardless of their participation position, pricing is higher than local insurers. Local market conditions are more favorable, particularly for non-US risks. Appetite is robust, capacity is sufficient, and price increases are generally modest.
Pricing (+1-10%)
Price increases continue but in most cases are relatively modest, depending on three key factors: insurer (international vs. local), risk type and industry.
Capacity (Ample) Capacity remains sufficient.
Underwriting (Rigorous) Underwriting remains highly selective, with additional questions related to COVID-19 impacts and management thereof.
Limits (Flat) Expiring limits can be achieved in most cases.
Deductibles (Flat) Expiring deductibles can be achieved in most cases.
Coverages (Restricting) There is a growing trend for insurers to apply Cyber-related restrictions.
A Look Ahead (Moderate) Current market conditions are expected to continue and may become more challenging for higher risk industries like financial institutions.
Q4 Property Summary
Overall (Challenging)
Market conditions remain challenging. Risks that can be placed locally are experiencing only moderately challenging conditions while risks requiring reinsurance support are experiencing a more difficult environment. Non-preferred and/or poor performing risks may find limited appetite as well as significantly increased pricing and restrictive terms.
Pricing (+11-30%)
Rate pressure continues, with non-preferred and/or poor performing risks experiencing the most challenging pricing environment.
Capacity (Ample) Most local insurers utilize their treaty to provide capacity, which is sufficient, assuming rate adequacy. Insurers are focused on using their capacity on preferred risks.
Underwriting (Prudent) Underwriters are stringently adhering to underwriting guidelines, with very little flexibility. In some cases, non-preferred or hazardous risks are being declined without further options.
Limits (Flat) Expiring limits can be achieved in most cases; however, there is a growing trend to reduce the Flood sub-limit.
Deductibles (Flat) Expiring deductibles can be achieved in most cases with the key exception of poor performing risks and flood coverage, which are experiencing mandated deductible increases.
Coverages (Stable) Expiring coverages can be achieved in most cases with the key exception of flood coverage, which is being withdrawn or sub-limited by some insurers.
A Look Ahead (Challenging) Upcoming treaty renewals are expected to have an impact on underwriting guidelines and strategies.
Latin America: Regional Market Dynamics
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