Pricing

Stubborn inflation, rising loss costs – especially related to Natural Catastrophe Property, Casualty, and Professional Lines – surging reinsurance costs and reinsurance capacity pullback, and uncertainty related to the events in the banking industry served to pressure pricing upward, while improved profitability and pressure to achieve (insurer) growth targets served to dampen increases. The overall impact was a general continuation of the pricing deceleration that began in 2022, with D&O experiencing the most favorable conditions while Natural Catastrophe exposed Property experienced the most challenging conditions.

Capacity

Capacity remained sufficient across most products and increased in some areas targeted for growth. Key exceptions included Property – especially for risks with heavy Natural Catastrophe exposure – as well as risks with ‘high hazard exposures’ such as carbon intense industries. Such risks experienced a material reduction in available capacity, driven largely by insurer reactions to 2022 storm activity and surging reinsurance costs.

Underwriting

Insurers remained focused on profitable growth and retention of well-performing risks and continued to expand their appetite in targeted areas. Underwriting was generally more flexible but remained disciplined based on individual risk profile, controls and performance. Property underwriting was less responsive and timely than the market at large, creating additional stress in an already challenged Property market.