Automobile
Market conditions remained challenging, driven largely by poor performance – especially related to Robbery and Terrorism claims – as well as the impacts of rising inflation on claim costs. Most risks – even those that performed well – experienced rate increases. Capacity was sufficient, barring restrictions imposed on Robbery and Terrorism, and certain parts of the country where most insurers will not deploy capacity. Underwriting was rigorous, slow, and data-driven. Coverages, limits and deductibles renewed “as is” in most cases. Looking ahead, market conditions are expected to remain challenging as insurers continue to focus on improving portfolio performance.
Casualty/Liability
Market conditions remained challenging for poor-performing and / or higher-hazard risks such as energy, power and storage facilities, which experienced capacity constraints and limited appetite. Well performing, in-appetite risks experienced a more favorable market environment. Price increases were common across much of the portfolio. Reinsurance continued to be an important source of capacity, particularly where local appetite was limited. Underwriting referrals were common. Looking ahead, current market conditions are expected to continue.
Cyber
Market conditions remained challenging due to continued claims activity and stressed portfolio performance. Significant price increases were imposed nearly across the board. Faced with claims severity, insurers further tightened capacity deployment to limit their exposure. Underwriting remained complex and underwriting guidelines were updated to adjust for attack frequency. Current program limits could be maintained but participation was spread across more insurers. Deductible increases continued to be mandated, and coverage restrictions were imposed. Looking ahead, current market conditions are expected to continue.
Directors and Officers
Market conditions moderated, the extent of which depended on risk profile and performance. In general, most risks experienced slight price increases – down from the more significant increases experienced in 2022 – sufficient capacity, and stable coverage terms, limits and deductibles; however, listed risks experienced more challenging conditions. Insurers remained selective, and local underwriting authority remained limited. Looking ahead, current market conditions are expected to continue.
Marine
Market conditions were moderate and stable. Flat pricing could be achieved for well performing risks with lower risk profiles, while larger and more complex risks experienced modest rate increases. Capacity increased and was sufficient for most risks. Underwriting was prudent in general, but local insurers were more rigorous and rigid for challenging Cargo risks such as Agribusiness and Fresh Fruits / Food. Most risks renewed with flat limits and deductibles; however, increased limits were available for some well performing risk types. Looking ahead, current market conditions are expected to continue.
Professional Indemnity
The market was limited, and complex, and market conditions varied widely depending on the type of risk (e.g., industry, activity and in the case of projects, location). Price increases were generally modest, with more significant increases in the financial sector. Capacity was available for many risks but was constrained for difficult risk types or poor-performing risks, with engineering projects experiencing the most limited capacity. Underwriting was cautious and somewhat conservative dependent on risk type. Coverages, limits, and deductibles remained stable. Looking ahead, business segment / risk type will remain a key factor in underwriting and placement outcomes. In general, a moderate outlook is expected.
Property
Following the treaty renewal season, market conditions were challenging. Price increases were imposed, although they were generally modest. Appetite and capacity contracted. Facultative reinsurance was an important lever for securing large tower limits and served to reduce the reliance on the more restrictive and limited CAT treaty capacity. The underwriting environment was stringent and rigorous, and each risk was reviewed and re-underwritten. Limits were maintained, but additional insurer participation was required. Expiring coverage terms were achieved in most cases. Looking ahead, appetite and capacity are expected to remain stable while pricing is expected to move in conjunction with global market.
©2023 Aon plc. All rights reserved | Contact Us | Privacy Policy | Legal