Asia Insurance Market Report 2015

Although, overall, Asia remained a buyer’s market in 2014, with rates remaining stable or decreasing in most lines of coverage, rate increases varied by country and within specific lines of insurance.

Although, overall, Asia remained a buyer’s market in 2014, with rates remaining stable or decreasing in most lines of coverage, rate increases varied by country and within specific lines of insurance.

Although, overall, Asia remained a buyer’s market in 2014, with rates remaining stable or decreasing in most lines of coverage, rate increases varied by country and within specific lines of insurance. For example, the employee health and benefits (EH&B) market remained unstable throughout the region due to major political and social reforms, greater demand for advanced medical technology resulting in increased premiums, and pressure on companies to enroll their employees in national health care schemes.

Other key findings from the report:

• Non-catastrophe-exposed and catastrophe-exposed property capacity remained readily available throughout the region, with rates holding steady or decreasing for those insureds with good loss experience.
• Although the financial lines of insurance remained competitive for much of the region, there were exceptions; in Vietnam, rates remained stable but coverage restrictive due to limited capacity, whereas lack of private sector insurers to write this line of insurance, coupled with poor loss experience, resulted in rate increases in India.
• In many countries of the region, EH&B rates increased in 2014 due to the higher demand for advanced medical care and the inflationary costs of health benefits.
• China took center stage in the captive and marine cargo specialties, as it moved to establish captives for a few state-owned enterprises and became the largest single marine cargo market in Asia, underwriting 9.3% of the total US$18.2 billion premium underwritten in 2013.