AON Asia Market Review 2016February 18 2016
Last year saw continued pricing pressures across most classes and a challenging investment environment that forced underwriters to focus on improving underwriting performance.
While both insurance and reinsurance markets continue to be very competitive, there is a growing recognition that continued reduction in rates and broadening of terms and conditions is not sustainable in the medium term, particularly in the current economic environment. However, market capacity generally remains plentiful.
Another relatively benign year saw very few significant insurable losses despite some regional and global insurers sustaining large losses, such as the Tianjin China port explosion. However, this seemingly had little effect on the local Chinese market or the region as a whole. Coupled with more than adequate capacity in the region, the current competitive environment appears very sustainable.
Whether the recent El Niño effect causes any change of note during 2016 remains to be seen; and how the industry deals with fast-emerging risks continues to be a challenge for the market. Where emerging risk is concerned, the more data and analytics that can be brought to bear is of immense importance to all involved.
- August 20
The move comes as the broking group's MGA division acquires AIG's HNW home and contents portfolio.
- July 2
The Asia chief executive discusses Covid-19, going digital and restructuring.
- April 10
Climate change, increased urbanisation and a growing concentration of assets were on the risk agenda for 2018.
- March 19
Economic uncertainty, more complex risks and tighter underwriting are all influencing Asia's markets.
A longer claims process and increased cost were some of the challenges faced by insurers.
Tropical cyclones have always been a significant peril in Asia and a major focus for risk assessment in the region.