Increasing competition between insurers in the Asia-Pacific region is pushing down rates, according to Standard & Poor’s (S&P). Speaking at a press conference in London last week, Melbourne-based regional CEO Ian Thompson warned the industry’s “underwriting discipline” is under threat from the region becoming “over-populated” with insurers and cheaper reinsurance capacity becoming available.

An S&P report says volatile investment markets and increasing regulation in the region have to be contended with by insurers. “There is, however, a greater delineation between successful and marginal players than there was two years ago, with a greater concentration of business being held by leading domestic players.”

Mr Thompson also said further consolidation in the Asia-Pacific insurance markets is likely. And he predicted insurers’ profits for this year will be lower than last year.