Market News

Market Anticipates Low Single-Digit Rate Increases Amid Sovereign Risk Concerns

Anticipates, Concerns, Increases, Market, Rate, Risk, SingleDigit, Sovereign

As market participants shift their attention towards sovereign risk, an early consensus is emerging, suggesting that low single-digit rate increases may be on the horizon.



Early projections suggest that property cat renewals in the Asia Pacific markets will see risk-adjusted rate increases in the low single-digit range. This comes as most of the “heavy lifting” has been done at the 2023 renewals. According to sources, the renewal at 1 January is expected to be more stable, with only modest increases for property covers.

Gallagher Re Asia Pacific managing director, Mark Morley, stated that there is currently no indication of any capacity shortfall for the region’s 1.1 renewals. He expressed hope for a more rational and predictable renewal this time, based on the conversations they have had so far.

Reinsurers at the Singapore International Reinsurance Conference also share a similar sentiment, except for markets that have experienced losses in recent years. Markets such as Malaysia and the Philippines have faced increased scrutiny from reinsurers due to elevated cat losses.

In terms of more mature markets in the region, South Korea’s P&C market had an aggregate 103 percent combined ratio in 2022, mainly due to elevated losses.

One recurring theme at the conference is the desire to increase the provision of solutions for sovereign risk pools. Existing sovereign pools are considering the creation of a joint reinsurance facility to optimize the use of capital. Sovereign clients have become more comfortable with basis risk, leading to an uptick in demand for reinsurance solutions.

Ravi Menon, managing director of the Monetary Authority of Singapore, highlighted sovereign risk pools as one of three forms of alternative risk transfer that the regulator is looking to encourage in Singapore, alongside ILS and captive solutions. Sovereign-focused risk-financing solutions are seen as the most viable option for countries to manage natural catastrophe risks, especially for vulnerable communities that cannot afford privately funded insurance.

  • Creative Ways to Use Stickers: Top 10 Places to Put Stickers on Your Items

    Creative Ways to Use Stickers: Top 10 Places to Put Stickers on Your Items

    Stick it to me! Stickers are the ultimate form of self-expression and personalization. But where should you put them to truly make a statement? From laptops to water bottles, cars to notebooks, the possibilities are endless. Let’s explore the best spots to show off your sticker collection in the human touch language. Stickers have become…

  • Missing Kansas women identified as bodies found in rural Oklahoma, investigation underway

    Missing Kansas women identified as bodies found in rural Oklahoma, investigation underway

    The bodies of two missing Kansas women have been identified after they were found in a rural area of Oklahoma. The discovery has shocked the community, and authorities are now working to piece together what happened to the victims. Stay tuned for more updates on this developing story. The remains of two missing Kansas women,…

  • How Much is 50 ml in Ounces? A Complete Guide to Conversions and Measurements

    How Much is 50 ml in Ounces? A Complete Guide to Conversions and Measurements

    Have you ever wondered how much 50 ml actually is in terms of ounces? Understanding different measurements can be confusing, but fear not! In this article, we will break it down for you in simple terms so you can easily visualize and understand the conversion from milliliters to ounces in everyday human touch language. Let’s…

Leave a Comment

Vegas Golden Knights Foundation and Smith’s Team Up for $20,000 Gas Giveaway in Las Vegas Marriott’s European Expansion: 100 New Hotels, 12,000 Rooms by 2026 Snap Analyst Ratings: 12 Experts’ Viewpoints, Price Targets, and Performance Evaluations Dubai Floods and the Postponement of Token2049 Conference What Happens If You File Taxes After April 15?
Vegas Golden Knights Foundation and Smith’s Team Up for $20,000 Gas Giveaway in Las Vegas Marriott’s European Expansion: 100 New Hotels, 12,000 Rooms by 2026 Snap Analyst Ratings: 12 Experts’ Viewpoints, Price Targets, and Performance Evaluations Dubai Floods and the Postponement of Token2049 Conference What Happens If You File Taxes After April 15?
Vegas Golden Knights Foundation and Smith’s Team Up for $20,000 Gas Giveaway in Las Vegas Marriott’s European Expansion: 100 New Hotels, 12,000 Rooms by 2026 Snap Analyst Ratings: 12 Experts’ Viewpoints, Price Targets, and Performance Evaluations Dubai Floods and the Postponement of Token2049 Conference What Happens If You File Taxes After April 15?