Broker Aon used the 23rd East Asian Insurance Congress in Brunei Darusalam to launch its latest ‘Asia Property, Liability and D&O Report: Buyers bask as sellers sweat’.

The report predicts further competition in the sector with little signs of any let up.

It adds that underwriters are expecting further pressure on already declining rates and increasing competition from outside the domestic market, particularly Australia. At the same time many buyers are managing to achieve more coverage for their money.

However, it is not all doom and gloom for the sellers. Claims are low and many buyers are expanding their businesses with a corresponding growth in their insurance needs, while inward foreign investment is creating further demand.

“While we continue to see a reduction in rates, we also expect to see growth in the overall size of the premium pot,” said Oliver Schofield, leader of Aon’s Global Property Practice. “Economic prospects for the region in the medium term remain bright. The non-life insurance sector is forecast to grow by 2% in 2007, or just under 9% if you exclude the Japanese market. Despite declining rates, Asia remains a very attractive market.”

Simon Thompson, leader of Aon’s Global Liability Practice, commented, “Buyers of general liability continue to enjoy rate reductions, or stability at worst, in almost all cases. Perception of emerging liability risks is rising in the region but awareness still falls behind their European peers. This will be a factor for both buyers and insurers in the near future as Asian corporations continue to expand their operations globally.”