Q1 Casualty/Liability Summary
Overall (Moderate)
Market conditions have remained stable. Local insurers have generally been more competitive and growth-focused than international insurers.
Pricing (Flat)
Most placements have been renewed at expiring pricing and in some cases – especially, where there was competitive pressure - rate reductions were achieved.
Capacity (Ample) Capacity has been sufficient as local insurers, focused on growth, have filled capacity gaps left by international insurers which have reduced their participation.
Underwriting (Prudent) Underwriting has been stable. Underwriters have been prudent but flexible, especially for well performing risks and large risks where there has been competitive pressure..
Limits (Flat) Expiring limits were achieved in most cases.
Deductibles (Flat) Expiring deductibles were achieved in most cases.
Coverages (More Restrictive) Insurers have continued to clarify their treatment of Silent Cyber risk to exclude losses arising from cyber attacks.
A Look Ahead (Moderate) Current market conditions are expected to continue.
Q1 Directors and Officers Summary
Overall (Moderate)
Overall market conditions have remained stable, with signs of pricing deceleration. International insurers (excluding Japanese local insurers) have continued to increase rates for any risk not adjusted in the last renewal cycle. Appetite has been limited in the international D&O marketplace for new business for organizations who experienced negative impacts from COVID.
Pricing (+1-10%)
Price increases have continued but have decelerated.
Capacity (Ample) Capacity has been sufficient for most risks, with some constraints for new business and industries severely affected by COVID.
Underwriting (Prudent) Underwriting has been stable; however, detailed information has been required - especially for industries which suffered negative impacts from COVID.
Limits (Flat) Expiring limits were achieved in most cases.
Deductibles (Flat) Expiring deductibles were achieved in most cases.
Coverages (Stable) Expiring coverages were achieved in most cases.
A Look Ahead (Moderate) As rate increases have been applied to most placements at recent past renewals, and insurer appetite adjustments have been implemented, continued market stabilization is expected.
Q1 Trade Credit Summary
Overall (Soft)
The insolvency rate has remained historically low and as a result, insurance market conditions have continued to be favorable. Soft market pricing has continued, appetite has been strong, and limit increases could be achieved.
Pricing (Down)
Rate reductions have become common.
Capacity (Abundant) Capacity has been abundant as a result of favorable performance.
Underwriting (Flexible) Two-year policy periods – enabling clients to lock in on favorable pricing – have become common.
Limits (Increased) Increases to policy limits were achieved for risks in well-performing sectors.
Deductibles (Flat) Expiring deductibles were achieved in most cases.
Coverages (Stable) Expiring coverages were achieved in most cases.
A Look Ahead (Moderate) Insurer concern related to potential impacts from the geopolitical events in Eastern Europe may increase underwriting and pricing conservatism.
Q1 Cyber Summary
Overall (Challenging)
International insurers have remained highly cautious, resulting in continued significant price increases and a tightening of coverages. Local insurers were offering more favorable treatment but have begun to transition to more conservative, stringent underwriting and pricing approaches.
Pricing (+11-30%)
As loss frequency and severity have continued to challenge insurer loss ratios, significant rate increases have continued.
Capacity (Ample) Despite limited appetite and underwriting conservatism, Cyber market capacity has remained stable.
Underwriting (Prudent) Underwriting has been rigorous and stringent, and extensive, detailed underwriting information has been required.
Limits (Decreased) Limit reductions have been applied on a case-by-case basis.
Deductibles (Increased) Deductible increases have been applied on a case-by-case basis.
Coverages (More Restrictive) International insurers have continued to impose coverage restrictions, and there has been a growing trend amongst local insurers to also restrict coverage.
A Look Ahead (Challenging) Current market conditions are expected to continue.
Q1 Property Summary
Overall (Challenging)
Market conditions have remained challenging as insurers continued their focus on improving portfolio performance through rate escalation and appetite refinement.
Pricing (+1-10%)
Pricing has remained challenged, with rate increases imposed on most renewals. Natural catastrophe exposed risks have been experiencing the most significant rate increases.
Capacity (Constrained) Capacity constraints have continued for Earthquake and Flood coverages.
Underwriting (Prudent) There has been minimal change in the underwriting environment, which has remained moderately conservative.
Limits (Decreased) Limits have been generally stable, except Flood sublimit have been reduced.
Deductibles (Flat) Expiring deductibles were achieved in most cases. Low / zero deductibles have remained available.
Coverages (Stable) Expiring coverages were achieved in most cases.
A Look Ahead (Challenging) A continued insurer focus on improving loss ratios is expected and, as a result, current market conditions are likely to continue. Base premiums are expected to increase in H2 2022.
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