Asia Pacific Regional Landscape Q2 2021 Overview
Insurance Market & Ket Risks
Internal disconnects are emerging within some insurers. Insurer growth strategies are taking time to translate into new underwriting practices, especially considering the prolonged period of remediation focus. This will likely take some time – and patience - to work through. In the meantime, growth expectations of insurers will be challenged by underwriting teams fearful of writing too close to underwriting guideline boundaries.
Market conditions are improving – but in pockets. Rate movement in some areas is starting to ease and particularly the more vanilla occupancies and exposures, well-managed risks, and risks with low Nat Cat footprint, while other areas such as Cyber, Professional, and complex Property, remain very challenged. There is also a growing disconnect between rate requirement for large limit capacity and lower limit purchase with the former remaining far more challenged.
Data Loss Language is improving. In response to the widespread adoption by underwriters of “Silent Cyber Endorsements” (exclusions) – which were deemed by the industry at large as overly broad, and which had negative consequences for many insureds - Aon has been at the forefront of working with local and global underwriters to redraft Data Loss language. This is an important area, and Aon is gaining momentum in providing clients with much needed clarity.