COVID, real estate, supply chains and inflation are expected shocks for insurers in 2022


Continued COVID-19 restrictions in most Asian jurisdictions, potential challenges in the real estate market (whether related to Evergrande or not) in combination with global supply chain issues, rising property prices Energy, rising inflation and the withdrawal of temporary pandemic relief measures suggest that 2022 will be a bumpy ride for the Asian insurance market, even without new outbreaks of COVID-19.

Mr. Alex Derham, Senior Partner at international law firm RPC, headquartered in London, wrote this overview of what the insurance industry in Asia can expect in 2022. The outlook for the industry is presented in the firm’s “Annual Insurance Review 2022”.

Mr. Derham also commented on the following areas:


The continued growth of cyber claims is expected to continue in 2022 as cybercriminals continue to become more sophisticated. Asia remains an attractive target, especially as it is expected to overtake the United States as the largest market for data centers by 2024.


The longer-term effects of COVID-19 are expected to continue in the form of insolvencies in 2022, potentially leading to a further increase in A&D receivables and trade credits. Given the current difficult market in both sectors, further rate hikes are expected for these high-demand products, alongside insurers’ increased focus on policy terms and advance inquiries.

In contrast, other insurance lines of business can expect to see rate increases taper off as premiums stabilize.

Political risk

Political violence (re)insurers should remain cautious amid growing concerns about the potential for international sanctions, political uncertainty in Myanmar, and the broader potential for social and political unrest in various countries in the region as countries grapple with the economic challenges of transit in a post-COVID-19 era.


We can expect further growth in renewable energy, particularly in the areas of solar and onshore/offshore wind. Consumer awareness is also fueling growing consumer and regulatory pressure on insurers to act in accordance with ESG principles, including being selective about the types of businesses they choose to insure, particularly in the oil and gas sector. Growing interest in the ESG program is also expected to further propel the long-term growth of the ILS market to 2022 and beyond.


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