Singapore’s property insurance sees rate cuts in Q4

The rates are available for risks with favourable loss ratios and strong risk management.

The Singapore insurance market remains well-capitalised and competitive, with price reductions available for preferred risks across most lines of business, according to Aon’s Q4 2024 Global Insurance Market Insights Report.

Automobile insurance is the key exception, as insurers adjust rates to address ongoing loss trends. Underwriting remains disciplined, but insurers are showing increased flexibility on preferred risks. 

Market conditions are expected to remain favourable for buyers into 2025, barring any significant catastrophic losses. 

Chief Broking Officer of Commercial Risk Solutions Singapore, Lee Huang Ng, noted that the current environment presents an opportunity for insureds to explore broader coverage and higher limits.  

Rate reductions are achievable across most sectors, supported by strong performance and capacity. 

Cyber and Directors & Officers (D&O) insurance are seeing double-digit price cuts, particularly in excess layers. Capacity remains abundant, with support from international, regional, and local insurers.  

Underwriting practices vary by sector. Automobile insurance remains under pressure, with rising claims costs prompting rate hikes and higher deductibles. 

In Cyber, improving security measures are allowing some insureds to reduce deductibles after prior increases. Coverage remains stable overall, though exclusions for per- and polyfluoroalkyl substances (PFAS) are becoming more common.  

The Casualty/Liability market is moderate, with ample capacity, though insurers remain cautious about high-risk exposures, particularly in US-related operations and product recall extensions. 

Cyber insurance continues to favour buyers, with increased competition driving additional coverage opportunities. 

D&O insurance also remains buyer-friendly, with premium savings and expanded coverage, though insurers remain cautious about firms with exposure to cryptocurrency and the US market.  

In the Property sector, underwriting remains prudent, with price reductions available for risks with favourable loss ratios and strong risk management. 

Long-term agreements are being offered, though with only modest discounts.  

Overall, the Singapore market continues to offer competitive conditions, with insurers adapting to evolving risks whilst maintaining discipline in underwriting.