Pacific Insurance Market Report 2016

With 2016 under way, the global insurance marketplace appears to be heading in the general direction of soft pricing, reflecting insurer capacity, competition, and relatively low catastrophe losses, according to the “Pacific Insurance Market Report 2016.”

However, industry developments, including recent earnings announcements, executive leadership changes, and re-underwriting at several companies bear watching. Macro dynamics such as global economic, political, regulatory, technological, and environmental developments will also continue to affect the industry throughout the year.

Among the report’s findings:

• In the Australian market, substantial capacity in most lines which created favorable conditions for insureds, with the exception of life insurance. Global insurers are increasingly entering the Australian market and putting competitive pressure on incumbent insurers.
• Bushfire liability remains under scrutiny in Australia, with insurers reluctant to commit to this risk.
• In terms of emerging risks, insureds in Australia are starting to explore first-party cyber cover more fully, as well as pandemic risk.
• In New Zealand, market conditions are expected to remain generally favorable for insurance buyers. Cyber and environmental risks are on directors’ radars right now, as are natural catastrophes and major disruptions, such as fire risks.
• In Papua New Guinea, the market is competitive, with rate reductions expected to continue in 2016. In Fiji, emerging risks include cyber crimes and the risks associated with the enforcement of the new Companies Act that took effect in January 2016.

About the Pacific Insurance Market Report
Through data and analysis, the “Pacific Insurance Market Report 2016” provides a snapshot of current insurance market conditions and risk trends across major lines of coverage and various specialty sectors. The report reflects the experience of Marsh insurance professionals who work daily with the global insurance marketplace and provide clients with risk management advice.