Credit insurance has become more diffifcult.
Shorter term micro-insurance products are making their way into the Singapore market which can combat increased risk aversion, according to an Aon report.
The report revealed that coverage is stable but pandemic exclusions have become common. Credit insurance has also become more difficult and is under heightened scrutiny.
On the other hand, the reopening of businesses and optimism over the vaccination programme has boosted investor confidence and an economic rebound is expected in 2021. Besides pricing increases, the Singapore insurance market is moderately challenged when compared to the global market.
The market dynamics of key products in the country vary. For auto insurance, market price is seeing a modest increase in anticipation of a return to normal traffic patterns. Casualty prices and deductibles are rising as insurers are imposing blanket exclusions for communicable diseases and data and cyber risks.
Employers’ liability and workers’ compensation premiums are increasing, primarily due to changes in the new Work Injury Compensation Act, 2019. In addition, insurers now have the added responsibility of assessing permanent incapacities.
For financial lines, insurers are leveraging technical pricing approaches and rationalising capacity at the portfolio level, resulting in higher premium and decreased capacity. Insurers are being conservative in their scrutiny of insureds’ financial positions, operations (including return-to-work policies), controls, and governance.
For property lines, insurers are imposing communicable disease exclusions, withdrawing contingent business interruption coverage and imposing cyber exclusions on property damage and business interruption.
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