Automobile
Market conditions were challenging, characterized by significant price increases which were driven by currency challenges, the impact of high inflation on vehicle values, and continued supply chain disruption. Capacity remained generally sufficient, except for higher-risk commercial vehicles like rental and passenger. Underwriting was rigorous and slow; TCOR analysis played an important role. Expiring terms and conditions could be achieved in most cases. Traditional – rather than usage-based – products remained prevalent. Looking ahead, market conditions are expected to remain challenging. Insurer negotiations are expected to remain challenging and slow. Data-driven insights will continue to support client decision-making.
Casualty/Liability
Market conditions generally moderated; however, challenging conditions continued for complex risk types such as those in the oil and gas section, as well as poor performing lines of coverage such as Product Liability. Flat pricing could be achieved for most risks; however, modest increases were applied to complex risks where capacity and competition was limited. Underwriting was rigorous and detailed information was required. Coverage restrictions and limit reductions were imposed in some cases, such as Employer’s Liability. Looking ahead, the market is expected to become more challenging, driven largely by global economic conditions.
Cyber
Market conditions remained challenging. Rates continued to increase steeply, driven by continued poor performance, including the latest cyber attacks on the health industry which impacted some insurance programs. Complex risk types like energy, financial institutions, fintech, utilities, technology, education and health experienced the most challenging conditions, as did risks where controls were deemed by underwriters as insufficient. Local capacity remained constrained but capacity from international (re)insurers was available to meet the needs of most risks. Underwriting was rigorous and stringent, and most risks were referred. Insurers continued to manage deductibles upward, including waiting periods and coinsurance for Ransomware and Business Interruption. Looking ahead, current market conditions are expected to continue.
Directors and Officers
Market conditions were moderate, even amidst economic uncertainty, as well as increased pressure from shareholders and third parties on Directors and Officers to enhance decision frameworks. Despite these factors, appetite and competition was healthy, which served to dampen price increases for most risks, with the key exceptions of oil & gas risks, start-ups, government risks, and some ADRs. Looking ahead, current market conditions are expected to continue.
Marine
The market remained challenging due to rising losses as well as increases in reinsurance contracts, specifically for transportation risks and sabotage & terrorism cover. Rates increased significantly, even for well performing risks. Capacity was sufficient to meet demand, although Stock Throughput required capacity from the reinsurance market. Underwriters were cautious, even for well performing and well managed risks, but they remained solutions-focused and offered alternatives, even in the face of tightening conditions. Through negotiations, expiring coverages, limits and deductibles could generally be achieved. Looking ahead, market conditions are expected to remain challenging due to external pressures and supply chain challenges.
Professional Indemnity
Challenging market conditions continued, especially for industrial risks such as architects and engineers for heavy work and infrastructure, as well as financial institutions (for Professional, Medical Malpractice and Tech PI). Capacity was limited and price increases were imposed. Insurer appetite was refined as insurers focused on profitability, especially for complex risks. Looking ahead, current market conditions are expected to continue.
Property
The market was challenging, with continued price escalation, albeit generally modest, except for risks that required facultative reinsurance, which experienced more significant price increases and adjustment of technical conditions. Terrorism coverage also experienced more severe conditions, with significant price increases, mandatory deductible increases and limit reductions, and reduced capacity. General market capacity remained ample - both locally and in the facultative reinsurance market. Underwriters were prudent in their risk analysis and required evidence of improved risk controls. Additional subjectivities and guarantees were included in quotes and compliance periods were notably short. Looking ahead, current market conditions are expected to continue, and may become more challenging if global inflation continues to rise.
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