Page 32 - WTW Asia Insurance Market Report
P. 32

Rate Movements – 2016

Across Asia for both Wholesale and Retail

Property and                          -10% -  Aviation  -10% -
Casualty                              -20%               -15%

Excessive capacity is the key driver          For major airlines , there was a 10%
of falling rates.                             reduction in rates.

A number of syndicates have                   For Low Cost Carriers, there were
withdrawn from Lloyds’ Singapore              10-15% rate reductions.
platform, demonstrating tough
trading conditions in the market.             Hull War had flat rates due to
However, this move does little to             shrinking capacity. A significant
reduce the availability of capacity           correction is not expected to happen
to clients.                                   barring a major desertion of capacity
                                              from the market.

                    -10%                      E&O/D&O   -20% -
                                              There has been continued oversupply
The market is highly competitive.             of capacity dedicated to FINEX,
Abundant capacity is fuelling the             coupled with nearly zero loss activity.
decline in rates. The economic                Regulations and mandated limits
slowdown has carriers competing for           have changed this year, driving down
less business as an increasing number         demand and increasing competition.
of projects are delayed or cancelled.         Clients have also shifting their buying
                                              habits and are now buying insurance
                                              as a commodity as opposed to
                                              looking for a specific product.

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