Geography Trends Q1 EMEA and the UK

Italy

Market Dynamics

Q1 Automobile Summary

Overall (Moderate)

Insurers continued to experience favorable loss impacts related to pandemic-driven exposure decreases, and insurer profitability remained strong. As a result, overall market conditions remained favorable.

Pricing (Flat)

Expiring pricing was achieved in most cases.

Capacity (Ample) Market capacity remained sufficient in light of demand.

Underwriting (Prudent) Insurer appetite expanded; however, insurers remained cautious and focused on profitability.

Limits (Flat) Expiring limits were achieved in most cases.

Deductibles (Flat) Expiring deductibles were achieved in most cases.

Coverages (Broader) Broadened coverage terms were available in most cases.

A Look Ahead (Moderate) Current, modestly favorable market conditions are expected to continue even amidst ongoing economic recovery which will increase exposures.

Q1 Cyber Summary

Overall (Challenging)

Market conditions remained volatile and challenging, characterized by rigorous underwriting, focused appetite, and significant rate increases.

Pricing (>+30%)

Pricing increased across-the-board as portfolio performance remained stressed.

Capacity (Constrained) Market capacity remained constrained.

Underwriting (Rigorous) Underwriting remained rigorous and centralized – extensive, detailed information was required.

Limits (Decreased) Insurers continued to reduce their maximum limits offered, and as a result, more layers / co-insurers were required to complete placements.

Deductibles (Increased) Deductibles increased significantly, sometimes as much as 300-400% of expiring.

Coverages (More Restrictive) Coverage restrictions continued to be mandated. Change requests originating from insureds were seldom considered.

A Look Ahead (Challenging) Current market conditions are expected to continue and may worsen as insurers further reduce their appetite and capacity due to impacts from the geopolitical events in Eastern Europe.

Q1 Property Summary

Overall (Challenging)

Market conditions remained challenging, especially for risks placed in the international market. For poor performing or otherwise challenging risk types (e.g., food and steel risks), finding alternative lead markets or securing full panel subscription remained difficult.

Pricing (+11-30%)

As insurers continued to focus on profitability, significant price increases remained common.

Capacity (Constrained) During 2020 and 2021, market capacity decreased, and new capacity has not entered the market, leaving a smaller field of insurers and an overall reduction in available capacity.

Underwriting (Prudent) Underwriting has stabilized, although referral underwriting has remained rigid and demanding. Local insurers were generally flexible – within the context of the current market conditions. There was limited appetite for risks with insufficient underwriting information and/or loss prevention measures.

Limits (Flat) Limits were generally flat, although some underwriters reduced sub-limits for Natural Catastrophe and Client/Supplier coverages due to unfavorable experience in these areas.

Deductibles (Increased) Expiring deductibles were achieved for most placements; however, some insureds opted to increase their deductibles to help offset premium increases.

Coverages (Stable) Communicable Disease and Cyber exclusions were broadly applied at past renewals and coverage has stabilized.

A Look Ahead (Challenging) Current market conditions are expected to continue. Cost of capital – and therefore insurance market pricing - is expected to increase in line with inflation. The current geopolitical environment is expected to introduce uncertainty and further stress markets.

Q1 Casualty/Liability Summary

Overall (Moderate)

Market conditions were moderate to challenging. While pricing has stabilized, capacity remained constrained and underwriting rigor has strengthened, leading to longer placement cycles in some cases.

Pricing (Flat)

Rates have moderated, and flat pricing was achieved in most cases, with the key exceptions of higher risk industries such as life sciences and automotive.

Capacity (Constrained) Due to poor claims performance, some insurers have reduced their capacity which has decreased overall market capacity and left the market slightly constrained.

Underwriting (Prudent) The underwriting process has, in some cases, taken longer as insurers have required extensive details and were meticulous in their analysis.

Limits (Flat) Expiring limits could be achieved in most cases, although some insureds explored program structure changes as a mechanism to help offset rising premium costs.

Deductibles (Increased) Deductible increases were required on some poor performing risk types, especially those with US/Canada exposures.

Coverages (Stable) Expiring coverage could be achieved in most cases with the key exceptions of PFAS exclusions on chemical risks and territory restrictions on recently sanctioned countries.

A Look Ahead (Challenging) Concern and uncertainty related to the geo-political landscape is expected to lead to greater underwriting scrutiny and rigor and further coverage clarifications.

Q1 Directors and Officers Summary

Overall (Challenging)

Despite new capacity entering the market, overall conditions remained challenging in Q1, but were slightly more moderate than in 2021.

Pricing (+11-30%)

Significant rate increases continued but to a lesser extent than in 2021.

Capacity (Constrained) Insurer line sizes have contracted in recent years, requiring more participants to complete placements. While some new capacity has entered the market, in Q1, it remained insufficient to fill the gap.

Underwriting (Rigorous) Underwriting remained rigorous and centralized – extensive, detailed information was required. Local underwriters continued to have limited authority.

Limits (Flat) While total program limits were achieved at expiring levels, more policies and insurers were required to complete placements.

Deductibles (Increased) Side C deductibles increased, especially for risks with US exposure.

Coverages (Stable) Expiring coverages were achieved in most cases.

A Look Ahead (Challenging) Current market conditions are expected to continue.

Q1 Trade Credit Summary

Overall (Moderate)

The market remained pragmatic; however, insurers have been carefully watching the evolution of the geopolitical events in Eastern Europe and their potential impacts on risk (e.g., increased energy prices and supply chain disruptions).

Pricing (+1-10%)

Driven by favorable 2021 performance, the pricing environment remained generally stable but prices increased slightly as market conservativism grew in Q1.

Capacity (Ample) Capacity remained sufficient.

Underwriting (Prudent) Underwriting caution and conservatism increased in Q1.

Limits (Decreased) Limits were closely monitored and reductions were imposed on a case-by-case basis.

Deductibles (Flat) Expiring deductibles were achieved in most cases.

Coverages (More Restrictive) Coverages were closely monitored and some restrictions were imposed on a case-by-case basis.

A Look Ahead (Challenging) Market conditions are expected to become more challenging as the impacts of the geopolitical events in Eastern Europe continue to unfold.

Netherlands Market Dynamics

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