Automobile
As insurers aggressively competed for new business, market conditions remained moderately favorable. Flat pricing could generally be achieved, especially where incumbents faced more aggressive pricing from competing insurers. While for fleet risks appetite remained limited and underwriting was rigorous, overall market capacity was generally sufficient and underwriting was prudent. Deductible increases were leveraged to help offset price increases on poor performing risks. Looking ahead, a competitive market is expected to continue as insurers seek profitable growth. When appropriate, early and proactive remarketing will remain important to achieving favorable outcomes.
Casualty/Liability
Market conditions were favorable as insurers sought to retain and grow their portfolios. Appetite expanded beyond regional and global risks to mid-market multinational risks, and insurers shifted to a product / industry focus (e.g., clinical trials, Construction Liability) as a way to differentiate. Price reductions were common and capacity continued to expand. Underwriting was flexible and local authority was robust. Limit and deductible options were available. Insurers offered to quote on additional lines of coverage as a differentiator and growth strategy. Looking ahead, current market conditions are expected to continue.
Cyber
Market conditions started to stabilize. Competition increased for both new and renewal business, creating downward pressure on pricing. Flat renewal pricing was achieved for well-performing low-risk industry types while larger and more complex risks experienced moderate increases. Insurer appetite increased for lower attachment points and primary layers, and capacity deployment was healthy in that space. In addition, new players entered the market with an appetite for excess layers. The underwriting process remained rigorous and time-consuming. Insurers required the implementation of several key controls prior to considering cover. Expiring limits were achieved in most cases, although a few insurers reduced their line sizes. Coverage expansions were available in some cases; for example, where ransomware restrictions were previously imposed, many insurers demonstrated a willingness to provide options for restoring it (for an additional premium). Looking ahead, as insurers seek to achieve growth targets, competition will increase, and market conditions may further improve across pricing, capacity, underwriting, and coverage terms and conditions.
Directors and Officers
The softening trend that began in late-2022 continued, and in Q1, market conditions were favorable, driven largely by an influx of new D&O insurers and expanded appetite amongst traditional market players. A new renewal option was introduced: multi-year placement / Long Term Agreement (LTA), as a differentiator and a mechanism for retaining large corporate risks. Securities class action related to liquidation emerged as a key underwriting concern for risks in the US, and US-listed exposures remained under scrutiny and generally experienced low limit deployment at a high price. Looking ahead, healthy competition is expected to continue, potentially creating a further softening of market conditions.
Marine
Following three years of price adjustments, technical rating returned to a more sustainable level. Insurers focused on retention and profitable growth. Well performing risks in the standard P&C market experienced flat pricing to slight increases at renewal; however, pool clubs continued to seek price increases in order to balance their portfolios. Appetite and capacity were healthy. Looking ahead, modestly favorable market conditions are expected to continue as insurers seek to retain their core business and grow in targeted areas. There will likely be more flat renewals, and competitive forces will drive price reductions on well performing risks.
Professional Indemnity
The market transition that began in Q4 of last year continued into Q1 as insurers became more growth-focused. Driven largely by competitive forces, flat renewals were achieved on most placements, with the best outcomes generally achieved when alternative quotations were provided by competing insurers. Insurers reviewed their capacity, and some provided enhanced authority to local underwriters to increase their capacity. Client requests to restore limits that had been adjusted downward in recent years increased. Looking ahead, insurers are expected to seek to recover business lost during the recent hard market. This, combined with increased appetite from Singapore underwriters, is expected to create a more favorable and competitive environment in Q2 and beyond.
Property
Market conditions for across much of the local market were competitive. Price decreases were common, driven by improved loss experience, the mobilization of new capacity, fierce competition amongst incumbent insurers seeking to retain their portfolios, and new insurers aggressively seeking to grow their market share. Notably; however, pricing did not decrease at the same rate it had climbed during the hard market cycle. Multinational programs experienced a more moderate environment, with pricing mostly flat, and any increases or decreases generally small and largely dependent on Natural Catastrophe exposures, risk controls, loss trends and prior pricing adjustments. Capacity was generally sufficient for most risk types with the exception of multinational programs with Natural Catastrophe exposures. Flexible underwriting was leveraged by insurers as a differentiator for in-appetite risks while loss-active risks experienced a more conservative and rigorous underwriting environment. Looking ahead, current market conditions are expected to continue with a possible further softening. Appetite will remain strong for mid-sized risks with low complexity, as insurers continue to seek growth in this space.
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