Automobile
Market conditions remained highly competitive for this tariff-rated product. Local capacity was abundant, with few exceptions for higher risk profiles, which required reinsurance support. Underwriting was flexible and accommodating – even out-of-appetite classes were supported if combined with a preferred risk class. Insurers used service as a differentiator. Coverages, limits and deductibles remained stable. Looking ahead, current market conditions are expected to continue in this tariff rated product where the majority of insurers have robust capacity available.
Casualty/Liability
Market conditions remained moderate. Flat pricing was achieved for most risks, except poor-performing risks which experienced rate increases. Capacity remained stable. Insurer appetite was limited for USA and Canada risks and in some cases, insurers focused on only Thailand risks. Reinsurance support was needed in these cases. “As is” coverages, limits and deductibles were achieved for most placements. Looking ahead, most treaty renewals have passed so current market conditions are expected to continue.
Cyber
As a result of improved risk management, loss frequency and severity from ransomware attacks has decreased, and in turn, the challenging insurance environment showed signs of improvement. Rate increases continued nearly across the board, but they were materially less than in prior years and, in some cases where significant adjustments were previously made, near flat renewals could be achieved. Insurers continued to exercise caution in their risk selection and capacity deployment, particularly on new business, and appetite and capacity for excess placements was healthier than for primary placements. After two years of increased scrutiny around ransomware, common vulnerabilities and operational technology, required underwriting information is similar from insurer to insurer. Attacks to critical infrastructure and potential for systemic risk events remained top concerns for underwriters and insurers continued to clarify their wording for some risks like widespread events. Looking ahead, the improved market conditions of Q1 are expected to continue.
Directors and Officers
Market conditions remained generally moderate, with modest – and decelerating – pricing combined with healthy appetite and capacity for both primary and excess placements. Underwriting was prudent; however, greater rigor was applied for some risks and industries where management decision-making during the pandemic or related to the geopolitical events in Eastern Europe was questioned. Cyber and digital asset related risks, in particular, were scrutinized and more detailed information was required. Detailed program reviews were conducted for merger and acquisition related transactions, and on any risks where exposures had materially increased. As a result of the changing D&O risk environment clarifications to policy language were implemented. Looking ahead, current market conditions are expected to continue.
Professional Indemnity
Moderate market conditions continued and varied based on the nature of the professional work provided. Modest price increases were the norm. Appetite and capacity was healthy for both primary and excess placements. Underwriting remained prudent, although some risks experienced additional information requirements related to cyber and digital assets, as well as some territorial involvement. Coverages, limits and deductibles remained stable and extensions were available on a case-by-case basis. Looking ahead, current market conditions are expected to continue.
Property
Market conditions remained challenging, driven by the impacts of treaty renewals on appetite, capacity and pricing. Pricing increased significantly, especially for natural catastrophe excess placements, as well as for risk types that had performed poorly in the past such as plastic, rubber, wood and paper, where facultative reinsurance support was needed. Such risks also experienced more restrictive terms and conditions. Across all risk types, insurers required extensive underwriting information including survey reports and evidence of risk improvements. Underwriters carefully considered special clauses and wordings as they sought to limit their exposure and to confirm that insurer intentions were properly reflected in the coverage language. Limits remained generally stable; however, some insurers signed down their share due to reinsurance treaty requirements. Looking ahead, market conditions are expected to remain challenging, driven largely by the impacts of treaty limitations.
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