Automobile

Market conditions remained challenging, driven by continued impacts from inflation and associated rising repair costs, as well as from the geopolitical events in Eastern Europe. Modest price increases continued. While capacity was sufficient for most risks, those with poor historical performance or heavier exposures experienced limited appetite and capacity. Underwriting flexibility was demonstrated for some well-performing risk types. The market adjusted limits and deductibles upward based on rising vehicle values. Coverage extensions continued to adapt to changing technologies, including e-mobility and integrated vehicle technology. Looking ahead, continued rising claims costs will likely impact pricing.

Casualty/Liability

Market conditions were moderately favorable for mid-sized risks while larger and more complex risk types (e.g., automotive suppliers, medical products, chemical, significant US exposure) experienced a more challenging environment, including conservative pricing, underwriting, capacity deployment and terms offered. Inflation, Product Recall, Product Liability, and US exposures were key areas of concern and tended to dominate underwriting discussions. Capacity remained stable and was available for most risks despite de-risking and line re-sizing across certain insurers. Insurer appetite guidelines were applied rigidly for new risks. A number of client industries and coverages experienced mandatory deductible increases to comply with insurer requirements. Looking ahead, current market conditions are expected to continue. Appetite will remain strong for mid-sized risks with low complexity, as insurers continue to seek growth in this space. Underwriting scrutiny will remain on a technical level, particularly for large or complex risks. Inflation and US claims are expected to continue to drive rate increases.

Cyber

As insurers returned to the Cyber market, capacity and competition increased and conditions shifted to become more favorable, especially for smaller and mid-sized risks. Underwriting moderated, except for complex risks, which continued to experience a conservative and rigorous environment, especially for primary coverage, where extensive underwriting information was required and risks failing to meet minimum standards were difficult to insure. Most risks renewed with expiring limits; however, increases were available in some cases, especially on Excess layers. Coverages remained stable, even as insurers conducted coverage reviews for complex risks. New War and Cyber Operations exclusions were introduced in some cases. Looking ahead, current market conditions are expected to continue, and may slightly improve. Risk appetite is expected to increase as insurers seek growth again. Underwriting will continue to be restrictive, especially for large or complex risks. Despite inflation, increasing competition in this space is expected to temper any material rate increases.

Directors and Officers

As a result of increasing competition, market conditions for mid-sized risks shifted materially to become modestly favorable, while large and complex risks continued to experience challenging conditions. Most risks experienced price increases, largely driven by inflation as well as specific risk attributes. Capacity was sufficient for most risk types, with the notable exception of complex risks such as de-SPACs, automotive suppliers, companies with crypto-related business, and risks with material US exposure. Underwriting remained stringent. Deductible decreases could be achieved for Side C in some cases. Coverages remained stable, even for risks with poor financials, as insurers focused on retention and growth. Looking ahead, current market conditions are expected to continue. Appetite will remain strong for mid-sized risks with low complexity, as insurers continue to seek growth in this space. Underwriting scrutiny will remain on a technical level, particularly for large or complex risks.