Page 16 - Insurance Times November 2023
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APAC liability insurance 27, supported by workers compensa- According to GlobalDatas Insurance
tion and professional/management li- Database, the general insurance indus-
industry to surpass $61bn ability insurance, which is expected to try in Singapore is expected to grow by
by 2027 benefit from the expansion of business 6.9% in 2023 and 5.6% in 2024, sup-
The liability insurance industry in the from Lloyds syndicate. A stable pre- ported by investments in infrastructure
Asia-Pacific (APAC) region is projected mium increase, additional capacity, projects and a rise in the demand for
to grow from $39.4bn in 2023 to and improved underwriting conditions health insurance after the pandemic.
$61.7bn in 2027, in terms of written for incumbents in 2023 will support li- Swetansha Chauhan, Insurance Ana-
premiums, according to GlobalData, a ability insurance growth over the next lyst at GlobalData, comments: After
leading data and analytics company. five years. witnessing high growth in 2021 and
GlobalDatas latest report, Liability For instance, Australia-based Allstate 2022, Singaporean general insurance
Insurance Market Trends And Analysis Underwriting Agency, part of the industry growth is expected to slow
By Region, Line Of Business, Competi- Envest Group, secured support from down from 2023 onwards. Changing
tive Landscape And Forecast To 2027, Lloyds in June 2023 to expand its ca- economic conditions, rising inflation,
reveals that the liability insurance in- pacity in the Australian market. With and geopolitical uncertainties have led
dustry in APAC is expected to grow at support from Lloyds and Germany- to sluggish growth in all general insur-
a compound annual growth rate based HDI Global Specialty, Allstate is ance lines of business, which is ex-
(CAGR) of 11.8% over 20232027, sup- underwriting and distributing farm pected to slow down the overall indus-
ported by economic growth in the top package products, incorporating cover try growth in 2023.
markets and improved product offer- for liability, among others. Personal Accident and Health (PA&H)
ings. Liability insurance written premiums in insurance is the leading line of business
Liability insurance in APAC is concen- Japan are expected to grow at a CAGR in Singapore, which is estimated to
trated among the top three markets of 6.8% over 2023-27, driven by an in- account for a 23.9% share of the gen-
China, Australia, and Japan, which are crease in economic activities and digi- eral insurance GWP in 2023. It over-
estimated to account for a share of talization that has increased the expo- took the leading position from motor
48.2%, 19.6%, and 18.8%, respectively, sure to cyberattacks. Apart from offer- insurance in 2022, which has remained
of the regions written premiums in ing cyber insurance products, insurers the leading line of business during the
2023. in Japan are expanding their consulta- last decade. PA&H insurance grew by
tion services, such as providing drills to 32.6% in 2022, primarily driven by
Prasanth Katam, Insurance Analyst at combat email cyberattacks. heightened demand for health insur-
GlobalData, comments: APAC liability ance due to an increase in awareness
insurance growth is expected to out- Insurers are also providing cyber insur- after the pandemic, a rise in medical
pace the global growth over 2023-27, ance to cover Internet of Things (IoT) costs due to inflation, and the relax-
driven by prudential underwriting prac- devices used in the commercial sector. ation of travel restrictions around the
tices, new regulatory developments, Cyber insurance products covering world.
and digitalization that have increased reputational losses from social media
the demand for cyber insurance. exposure are expected to gain traction Swetansha continues: Recent regula-
over the coming years. tory developments have also supported
In terms of leading regional markets,
the growth of PA&H insurance. For in-
China is expected to emerge as the Singapore general insur- stance, on July 1, 2023, the Ministry of
largest contributor to overall APAC li- Manpower issued mandatory health
ability insurance growth. The reopen- ance industry to reach insurance for all new and existing for-
ing of the Chinese economy after the $5.5 billion by 2028 eign workers, including migrant do-
pandemic is expected to drive greater
The Singaporean general insurance in- mestic workers and those coming on
demand for liability insurance from the dustry is set to grow at a compound short-term employment pass (S Pass).
SME sector. As a result, Chinas liabil- annual growth rate (CAGR) of 5.8% The government is also providing vari-
ity insurance premiums are expected
from SGD5.54 billion ($4.02 billion) in ous subsidies to help employers pur-
to grow at a CAGR of 14.5% over 2023-
2023 to SGD7.35 billion ($5.5 billion) in chase medical insurance for their for-
27.
2028 in terms of gross written premi- eign workers. PA&H insurance is ex-
In Australia, premiums are forecast to ums (GWP), forecasts GlobalData, a pected to grow at a CAGR of 6.6%
grow at a CAGR of 11.3% over 2023- leading data and analytics company. during 2023-2028.
16 November 2023 The Insurance Times
