Page 33 - WTW Asia Insurance Market Report
P. 33

Financial  -10% -                         Terrorism                                -15% -
Lines      -20%                                                                    -25%

Reinsurers trying to grow and             Excessive capacity is the key driver of
diversify into areas other than           falling rates.
developed markets such as Hong
Kong and Singapore, resulting in          A number of syndicates have
overcapacity. There have been no          withdrawn from Lloyds’ Singapore
major claims or incidents for the past    platform, demonstrating tough trading
few years. Buyers are price driven and    conditions in the market. However,
have little interest in cover, causing    this move does little to reduce the
local markets to write for the top line.  availability of capacity to clients.

           -25%                                                                 -10% -
                                                                                -20%
Marine                                    Energy

Rates are at an all-time low and show     The fall in commodity prices has had
no signs of changing in the next 24       an impact on insured values, causing
months. Capacity continues to grow        rates to decrease for all coverages.
and competition among underwriters        The intensity of competition for new
is fierce.                                business due to a number of existing
                                          projects being delayed has further
                                          fuelled a decline in rates.

                                                     33Asia Insurance Market Report 2016
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