Automobile
Driven by positive insurer performance, market conditions were moderate, with flat to modest price increases. Insurer capacity contracted but remained generally sufficient. Underwriting was prudent as insurers remained focused on risk selection. Aggregate deductibles were more common. Capacity remained stable but with harder conditions. Underwriters had a more rigorous approach and were more selective. Coverages remained stable and limits and deductibles renewed “as is”. Looking ahead, current market conditions are expected to continue.
Casualty/Liability
The market remained competitive as insurers sought growth; however, appetite remained focused and market conditions were less favorable for Automotive and Life Sciences industry risks and risks with significant US exposures. New local excess layer capacity entered the market. Underwriting remained prudent, with sanctions and PFAS restrictions broadly applied, as well as mandates for increased attachment points of US Auto Liability placements. Deductibles were stable overall; however, significant US exposure drove some increase mandates. Looking ahead, a competitive market environment is expected to continue as insurers continue to seek growth with the key exceptions of higher risk sectors and risks with significant US exposure.
Cyber
Market conditions remained challenging although pricing decelerated and increases moderated materially. Capacity remained tight but was sufficient for most risks. Underwriting was rigorous, stringent and centralized. Insurers continued to deploy limit management strategies to limit their exposure. Coverages remained stable with no new across-the-board restrictions imposed. Looking ahead, while market conditions are expected to remain challenging, growing competition will drive a further improvement in the previously volatile, stressed environment.
Directors and Officers
The market showed clear signs of significant moderation as insurer performance improved. Modest price reductions became the norm. Appetite expanded as insurers focused on profitable growth. Many insurers that had withdrawn from D&O began re-entering the market and others increased their capacity. Underwriting remained prudent but was more rigorous for US risks. Limit, deductible and coverage changes that were imposed in recent years remained in effect. Looking ahead, favorable market conditions are expected to continue.
Marine
Market conditions were moderate as insurers sought growth in this market. Pricing was generally flat and reductions could be achieved for well-performing risks. Capacity was sufficient for most risks but was limited on risks with very high exposure values. Underwriting was prudent and detailed risk and exposure information was required. Most placements renewed with “as is” limits, deductibles and coverages. Looking ahead, current market conditions are expected to continue.
Professional Indemnity
Market conditions were moderately challenging, driven largely by the withdrawal of capacity in recent years. Appetite was narrowly focused and growth targets tended to focus on Medical Professional Civil Liability. Most placements experienced significant price increases while structured portfolio solutions remained more competitive. Capacity remained stable; however, placement limits tended to decreas due to overall market constraints. Underwriting became more rigorous related to events in Eastern Europe as well as for certain higher risk activities and positions. Looking ahead, a tightening of the Professional Indemnity market is expected, driven largely by challenges in the financial markets and the banking space.
Property
2022 saw mixed results across insurers which then determined Q1 behaviors. Insurers with favorable 2022 performance sought cautious growth in Q1 while others were more conservative and focused on improving results. Modest price increases were imposed on most risks. Appetite and capacity was limited for challenging occupancies, but strengthened for lower-risk types, which were oversubscribed in some cases. Portfolio reviews were common. Limits were generally stable; however, Business Interruption values and limits were scrutinized and adjusted where deemed necessary. Looking ahead, favorable market conditions are expected for preferred risk types while others may experience more a moderate environment.
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