Asia Pacific buyers are generally not affected by the same degree of falling original demand that has been experienced in Europe and North America. But reinsurance price competition is still strong and buyers with a clean record were able to secure reductions. Overall the price picture was mixed, because against the background of a market that is softening, there was significant loss activity in several territories during 2009, particularly in the Philippines and Indonesia. Buyers who received reinsurance recoveries in 2009 faced increases at renewal. In Australia an early renewal saw clients achieving risk adjusted rate reductions of up to 10 percent.
The Asia Pacific renewal encompasses a long period, with the Australian market completing successful placement relatively early in the season, while other territories continued placements right up to the last day before all capacity was secured. Quoting markets showed discipline and while the overall movement was downwards, little of the sometimes aggressive competition that has characterised some prior renewal seasons was seen.