Pricing

While pricing varied depending on product and geography, in general, the pricing trajectory stabilized despite the highly anticipated January 1 treaty renewals. Challenges continued for higher-risk sectors, risks with adverse claims experience, and Natural Catastrophe exposed Property risk.

Capacity

Capacity was sufficient across most products and risk types. As global insurers sought to balance their portfolios away from the US, capital (re)entered the local market – particularly, in the D&O space - and competition increased. This included alternative capital, such as parametric solutions, finally starting to make headway.

Underwriting

Insurers started to become more flexible in their underwriting approaches as they looked to differentiate and grow in areas within appetite. At the same time, non-preferred and loss-active risks experienced a more conservative and rigorous underwriting environment. Scrutiny of asset values continued as the impacts of global inflationary pressure continued to drive claims inflation. In long-tail lines, underwriters were pressured to demonstrate flexibility around premium adjustment mechanisms by paying less attention to client turnover and applying more weight to non-inflation-linked-exposures to minimize unwarranted rate increases.