Pricing
Pricing has stabilized across most of the market but remained dependent on capacity source (local vs global/reinsurance), risk complexity and performance, and extent of adjustments made at recent renewals. Cyber continued to experience severe rate adjustments.
Capacity
Capacity has stabilized, and was generally sufficient, with the key exceptions of Cyber, Stock Throughput, and D&O for US-listed companies. Some Property insurers leveraged capacity management strategies to limit their exposure on higher-risk exposure types and industries.
Underwriting
There has been a strong focus on profitability, which has driven underwriting discipline, rigor and conservatism, especially in the corporate segment. Underwriting escalation has been common, and the referral process has often been slow. More detailed and rigorous information has been required as insurers focus on reducing volatility through best-in-class risk selection and limiting per-risk exposure. ESG-related practices have been under scrutiny.
Limits
While most placements have been renewing with expiring limits, some insureds have been expressing interest in increasing their limits, but few have opted to do so as the additional cost has been considered prohibitive.
Deductibles
Expiring deductibles were achieved in most cases with the key exceptions of risks not previously adjusted, and high frequency risks. Ransomware coinsurance deductibles have become mandatory for Cyber placements.
Coverages
Insurers have been amending clauses related to war, sanctions, and coverage territory in response to geopolitical events in Eastern Europe. Marine underwriters have triggered cancel and rewrite clauses to modify territories. Political Risk coverages have started to become more relevant and visible for lenders and investors. Silent cyber exclusions have continued.
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