Capacity in SEA property market curb price hikes: report

Regional pro rata capacity remained tight but unlocked in most cases.

A significant capacity was deployed in the Southeast Asian regional retro property market which stifled previously anticipated price increases, according to a Willis Re report.

The region’s pro rata capacity remained tight but was unlocked in most cases but only after terms were further tightened. Loss free excess of loss programs recorded average firm order term risk adjusted increases of +2% with a range of -10% to +10%.

Earnings stability is still the focus for buyers, with more appetite for structuring options at the high rate on line lower layers, the report said.

Communicable diseases and cyber exclusions also remained the focus, with buyers being more receptive due to the experience from the renewals at the start of the year.