Automobile
Even as inflation accelerated and anticipation related to the Q3 presidential elections continued to grow, market conditions remained generally stable. Price increases continued, driven largely by increased costs of labor and parts, and ongoing supply chain challenges. Capacity was constrained, especially for larger risks, and those which performed poorly in the past. Underwriting remained prudent, although some challenging risk types experienced a rigorous and rigid environment. Limits continued to increase but did not keep pace with inflation. Looking ahead, current market conditions are expected to continue.
Casualty/Liability
Moderate market conditions continued, with expiring coverages, limits and deductibles generally achievable at modest price increases. New business in areas targeted for insurer growth experienced flat pricing or, in some cases, modest reductions. Capacity remained sufficient; even for challenging risk types reinsurance capacity was available. Underwriters remained somewhat conservative, and restrictions were imposed on underperforming risks and higher exposure industries. Limits and deductibles were generally stable, although the trend to modify them for local currency and inflation gained traction. Looking ahead, current market conditions are expected to continue.
Cyber
Despite growing demand for Cyber coverage, the market remained very limited, and appetite was narrow. Significant rate increases continued as the market matured and risk complexity remained high. Capacity for local risks was very limited, and only available for risks with full underwriting detail and acceptable security measures. Deductibles were stable, with a specific, additional Ransomware deductible often required. Underwriting was centralized, with minimal local authority. Looking ahead, market conditions are expected to ease somewhat as the Cyber market continues to mature. Security measures such as Multi Factor Authentication will play an evermore important role in securing coverage.
Directors and Officers
Market conditions remained moderate. As insurers sought profitable growth, flat pricing could be achieved in most cases, and reductions were available for in-appetite, well performing risks. Capacity was generally sufficient; however, distressed risks, large risks, and challenging risk types experienced limited capacity availability. Underwriting rigor and responsiveness varied widely by insurer with insurers who leverage referral underwriting tending to be slower and more stringent. Limits, deductibles and coverages remained stable. Looking ahead, current market conditions are expected to continue.
Marine
The market varied by Marine line. The Cargo market was soft, with local capacity available for most risks, with the notable exceptions of fresh food and electronics. Some limits were increased. By contrast, the Protection & Indemnity and Marine Liability market conditions were challenging – with price increases and a more rigorous underwriting environment - driven primarily by a lack of local capacity and the need to leverage reinsurance solutions for most risks. Looking ahead, current market conditions are expected to continue.
Professional Indemnity
The market environment was moderate. Flat pricing was achieved in most cases; however, construction and banking risks experienced more significant price escalation. Appetite was healthy and capacity was sufficient, except for construction and banking risks. Underwriting was rigorous and stringent. Limits, deductibles and coverages were generally stable. In some cases, deductible decreases could be achieved. Looking ahead, current market conditions are expected to continue.
Property
The market was two-tiered. Industrial risks experienced a cautious market. Capacity was reduced, requiring greater reliance on reinsurers. Price increases were common, averaging in the single digits although risks with buildings constructed using composite panels experienced more significant – and sometimes severe – increases, along with mandates to increase deductibles. Underwriting was slow and information-intensive. Despite local insurers reducing their shares, expiring limits were achieved by leveraging reinsurance and coinsurance. On the other hand, non-industrial risks experienced a generally favorable market with sufficient capacity and flat pricing on average – with some reductions available for preferred risks. Looking ahead, current market conditions are expected to continue.
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