By Chinnatamby Nandakumar, Director Global Professional and Financial Risks Lockton Companies (Singapore) Pte. Ltd. 

With regards to financial lines, the Intraday Momentum Index (IMI) for real estate investment trusts (REITS) is set to be most affected. Insurers generally said that REITs in COVID-19 would be heavily impacted as their returns from the properties will not be achieved for the year. The road to recovery will be long and no one knows how long. There is a lot of uncertainty ahead and underwriters are likely to want to price this into the premium calculation.  

Without changes from expiring policies and a strong profile we are seeing rate increases of 10-20% on average. Variations depend on the property location and type, COVID/regulatory impacts, how much debt needs to be re-financed in the near future, manager’s response, sponsor financial strength etc. Most of the affected REITs will be in hospitality and retail REITs.

So far for directors’ and officers’ liability insurance (D&O) and other professional indemnity insurance policies there hasn’t been much of an impact with premiums hovering at expiring or a maximum of between 5% and 10% subject to the gross turnover and claims notifications/ payments. 

For further information, please contact Chinnatamby Nandakumar under:


By Frederic Boles, Director - Business Development and Strategy Lockton Companies (Singapore) Pte Ltd. 

Credit is the most complicated line of business (LOB) with all insurers having very limited appetite for new business, reducing the limits for existing clients and increasing premium. 

On new business especially for SME or claim-free accounts, insurers are obviously talking about rate increase, but we can still achieve reduction with market competition and by presenting risks in a different way. I am aware that a number of larger prospects with significant “towers” have experienced increases which have led to some deciding to reduce their policy limit.

Insurers have not experienced as many premium payment issues as it was expected. Going forward, insurers are seeing further issues later in the year when the true impact on the economy will be better known. 

For further information, please contact Frederic Boles under:


By Yee Foong Fong, Senior Vice President & Head Employee Benefits Lockton Companies (Singapore) Pte. Ltd. 

Within Lockton Employee Benefits (EB) the most impacted line of business (LOB) is group travel scheme. Clients are seeking either pro-rated premium refund or cancellation in view of nil travelling amid the COVID-19 pandemic. Insurers are more inclined to offer premium-holiday for example for a 3-month period or premium discount in the next renewal. For other LOBs, and especially medical schemes, a discussion point is the possible deferment of non-essential medical treatment during the pandemic. Insurers are mostly cautious in proposing their medical renewal terms in anticipation of an influx of claims once the "circuit breaker" is over, hence a typical loading of 10 to 15% for borderline renewal case can sometimes be applied.

Drivers of change include the new norm of working from home (WFH) arrangements, increasing mental stress and ergonomics related injuries, anticipation of deferred medical treatment and higher projection of claims once the circuit breaker is lifted.   
In EB we expect more innovative tele-consult services, COVID-19 related coverage ie employee assisted programme (EAP) on mental wellness and general insurance (GI) carriers offering EB covers on ergonomic injuries, additional accidental death or daily income scheme, among others. 

For further information, please contact Yee Foong Fong under: