Casualty/Liability
Market conditions remained stable. Local insurers were generally more competitive and growth-focused than international insurers. Most placements renewed at expiring pricing although incumbent (mainly international) insurers sought to increase rates on US-exposed or poor performing risks. Rate reductions could be achieved in some cases where there was competitive pressure. Capacity from international insurers remained sufficient, and any gaps left by incumbent insurers reducing their participation were filled by local insurers seeking growth. Underwriters were prudent but flexible, especially for well performing risks and large risks where there was competitive pressure. While Silent Cyber has been clarified, most insurers have yet to clarify their positions on PFAS. Looking ahead, current market conditions are expected to continue.
Cyber
International insurers remained highly cautious in their underwriting; appetite was very focused, significant price increases continued, and coverage restrictions were imposed. Domestic insurers became more conservative in their underwriting, but appetite remained relatively healthy, and insurers continued to offer less restrictive coverage at more modest pricing. Extensive, detailed information was required to support the rigorous underwriting process. While expiring limits were achieved in some cases, international insurers mandated reductions based on risk type, experience and maturity. Low deductibles were available from local insurers while international insurers required more significant deductibles. Looking ahead, current market conditions may temper somewhat as insurers become more comfortable with the past program adjustments made and the profitability of their portfolios.
Directors and Officers
Market conditions remained stable, with continued price deceleration. Flat renewal pricing was achieved on most risks, with international insurers generally offering more competitive pricing than domestic insurers. Capacity was sufficient for most risks. Underwriting was prudent, with minimal additional information requested from insureds. Expiring coverages, limits and deductibles were achieved in most cases. Looking ahead, a further stabilization is expected, with greater competition potentially improving pricing for insureds.
Marine
Overall Cargo market conditions were moderate – with flat rates and sufficient capacity, with the key exceptions of storage risks and energy sector cargo (amidst geopolitical tensions in Russia and China). These risks experienced a generally more challenging underwriting and placement environment. Rates increased in the Hull & Machinery and Protection & Indemnity markets, driven partly by international risk trends. Looking ahead, concern is growing that market conditions may become more challenging due to geopolitical and war-related risks.
Professional Indemnity
Market conditions were moderate but stable. Most Professional Indemnity coverage is provided through programs and facilities, making the market relatively rigid and narrow. However, capacity is sufficient for most risks and flat pricing, coverages, limits and deductibles were achieved for most placements. Underwriting was cautious and no new requirements were introduced within association programs and facilities. Looking ahead, current market conditions are expected to continue.
Property
Market conditions remained challenging – even for well-performing risks – as insurers focused on improving their portfolio performance. Rate increases were mandated for many risks. Capacity was limited for earthquake and flood, as expected, and there was a growing trend to also limit fire capacity. Underwriting was sensible and insurers demonstrated flexibility for preferred risk types. Common deductibles continued across most insurers, although low or no deductible options were available for an additional premium. Expiring terms and conditions could be achieved in most cases. Looking ahead, based on recent rate revisions and treaty renewal outcomes, insurers are expected to continue to focus on profitability
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