Singapore’s property insurance market experienced price reductions in the fourth quarter of 2024, according to Aon’s latest Global Insurance Market Insights Report. The cuts are particularly available for risks with favorable loss ratios and strong risk management.
The report highlights that the insurance market in Singapore remains robust and competitive, with price reductions offered for preferred risks across most sectors. However, automobile insurance is a notable exception, as insurers raise rates to address ongoing loss trends. Despite this, insurers are showing increased flexibility on preferred risks.
Market conditions are expected to remain favorable for buyers through 2025, unless there are significant catastrophic losses. Lee Huang Ng, Chief Broking Officer of Commercial Risk Solutions Singapore, pointed out that the current environment offers an opportunity for insureds to explore broader coverage options and higher limits.
Rate Cuts Across Multiple Sectors
The report indicates that rate reductions are achievable across most sectors, driven by strong performance and ample capacity. Notably, cyber insurance and Directors & Officers (D&O) insurance are seeing double-digit price cuts, especially in excess layers. International, regional, and local insurers are all providing ample support in these areas.
In the automobile insurance sector, however, rising claims costs are prompting rate hikes and higher deductibles. Despite these pressures, insurers are maintaining disciplined underwriting practices.
For cyber insurance, improved security measures have enabled some insureds to reduce deductibles after previous increases. While coverage remains stable overall, exclusions for per- and polyfluoroalkyl substances (PFAS) are becoming more common.
Underwriting Variations and Continued Flexibility
Underwriting practices vary significantly across sectors. In the Casualty/Liability market, insurers remain cautious about high-risk exposures, particularly related to US operations and product recall extensions, though there is still ample capacity.
Cyber insurance continues to favor buyers, with increased competition providing additional coverage opportunities. D&O insurance also remains buyer-friendly, with premium savings and expanded coverage, despite insurers’ caution regarding firms with exposure to cryptocurrency and the US market.
In the property sector, underwriting remains prudent, with insurers offering price reductions to risks that demonstrate favorable loss ratios and solid risk management. Long-term agreements are available, though only with modest discounts.
Overall, Singapore’s insurance market remains competitive, with insurers adapting to evolving risks while maintaining disciplined underwriting standards.
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