Q2 Automobile Summary
Overall (Challenging)
Market conditions remained challenging, as government-mandated premium reductions continued to impact insurer profitability and appetite.
Pricing (Flat)
Pricing remained flat in this tariff-rated coverage.
Capacity (Constrained) At current pricing levels, appetite and capacity remained constrained. Heavy risks such as taxis, mixer trucks, and dump trucks faced a very limited market.
Underwriting (Rigorous) Underwriting remained rigorous, with challenging risks finding a very limited market.
Limits (Increased) Limits increased broadly across the market as more insurers were willing to offer higher third-party limits.
Coverages (Stable) Coverage remained stable in Q2.
A Look Ahead (Moderate) Current market conditions are expected to continue.
Q2 Cyber Summary
Overall (Challenging)
Market conditions remained challenging as insurer appetite and capacity further contracted.
Pricing (+11-30%)
As capacity has contracted and losses have escalated, insurer price adjustments have continued to be imposed.
Capacity (Constrained) As global capacity increased slightly, local capacity left the market.
Underwriting (Rigorous) Underwriting was stringent and rigorous. Centralized referral underwriting continued.
Limits (Decreased) Insurers reduced limits to lessen their exposure as appetite contracted.
Deductibles (Increased) Increases to deductibles were mandated in underwriting guidelines.
Coverages (More Restrictive) Ransomware remained a key area of concern, and coverage was further clarified.
A Look Ahead (Challenging) Current market conditions are expected to continue.
Q2 Employers Liability/Workers Compensation Summary
Overall (Moderate)
Market conditions remained stable and competitive. Insurer appetite remained strong for well-performing mid-to-large and lighter-hazard risks. Challenging risk types – if large and well-performing – could achieve moderately favorable terms through underwriter negotiations..
Pricing (Flat)
Competition remained fierce for well-performing, larger and lighter-hazard risks, while other risks experienced flat pricing.
Capacity (Ample) Capacity remained ample and sufficient for most risks, driven by strong portfolio performance.
Underwriting (Flexible) Underwriting was flexible as insurer appetite remained strong, especially for preferred risks.
Limits (Flat) Expiring limits were achieved in most cases.
Deductibles (Flat) Expiring deductibles were achieved in most cases.
Coverages (Stable) Expiring coverages were achieved in most cases.
A Look Ahead (Moderate) Favorable market conditions are expected to continue for large and well-performing risks, with increased competition, which may lead to more favorable outcomes. Smaller risks and high-risk exposures will likely experience moderate conditions.
Q2 Trade Credit Summary
Overall (Moderate)
Market conditions remained stable despite ongoing COVID-19 uncertainty, with flat pricing, sufficient capacity and flexible underwriting.
Pricing (Flat)
Pricing competition was common on large and/or well-performing risks, and remained stable overall.
Capacity (Ample) Capacity remained sufficient for most risks.
Underwriting (Flexible) Underwriting remained flexible and underwriters were accommodating on most risk types. Insurers continued to exercise caution on risks that were impacted by COVID-19 amidst an increasingly uncertain economic outlook.
Limits (Flat) Expiring limits were achieved in most cases.
Deductibles (Flat) Expiring deductibles, where applicable, were achieved in most cases.
Coverages (Stable) Coverages remained stable.
A Look Ahead (Stable) Market conditions are expected to remain stable but are highly dependent on COVID-19 trends which impact the economy considerably.
Q2 Casualty/Liability Summary
Overall (Moderate)
Market conditions remained stable, with flat pricing, flexible underwriting and sufficient capacity. Local insurers focused on developing Product Liability portfolios.
Pricing (Flat)
Pricing remained flat in Q2.
Capacity (Abundant) Capacity remained at or near historically high levels.
Underwriting (Flexible) International insurers were cautious in their underwriting, especially for overseas risks, while local insurers were more flexible and accommodating, especially for low-medium risks and higher risks with low policy limits.
Limits (Flat) While overall limits were stable, the recall extension under Products policies tightened and sub-limits were applied.
Deductibles (Flat) Expiring deductibles were achieved in most cases; however, increases were often required for complex or critical products.
Coverages (Stable) Coverages remained stable and expiring coverages were achieved in most cases.
A Look Ahead (Moderate) Current market conditions are expected to continue, with increasing competition for small and mid-sized risks. Complex and critical products risks will likely continue to experience more challenging market conditions.
Q2 Directors and Officers Summary
Overall (Challenging)
Market conditions remained challenging, especially for companies listed overseas. A major Securities Class Action loss continued to impact pricing and underwriting conditions for Chinese domestic public listed companies. Insurer preference for private risks continues.
Pricing (+11-30%)
Insurers remained concerned about the impact from the major Securities Class Action loss and limited appetite continued to push rates upwards, though increases have slowed since Q1. US listed risks continued to experience the most significant price increases while non-US listed risks experienced less severe increases. Flat pricing was generally achievable for private risks.
Capacity (Ample) Capacity was ample for most risks if the pricing was deemed sufficient; however, appetite for some US listed risks remained very low.
Underwriting (Flexible) Underwriting became more flexible as underwriters were generally more willing to be accommodating. Insurers became more focused on growth.
Limits (Increased) Limits began to increase in Q2 with the notable exception of US listed risks.
Deductibles (Flat) Expiring deductibles were achieved in most cases.
Coverages (Stable) Coverages remained generally stable following the introduction of restrictions in the previous quarter; however, some insurers – motivated by increasing cyber and geopolitical concerns – added exclusionary language.
A Look Ahead (Moderate) Current market conditions are expected to continue. There will likely be more demand from clients, though insurer appetite is expected to remain somewhat limited.
Q2 Property Summary
Overall (Moderate)
Appetite and competition has been strong for well performing, larger, lighter-hazard risks while risks needing international capacity have experienced more moderate market conditions. Insurers are keenly focused on profitable growth.
Pricing (Flat)
Pricing remained flat as local insurers competed for well-performing risks.
Capacity (Ample) Capacity remained sufficient for attractive, loss-free risks with the key exception of large risks in the semiconductor industry.
Underwriting (Flexible) Insurer appetite was strong and underwriting remained accommodating, particularly for well-performing risks.
Limits (Flat) Limits generally remained flat; however, challenging risk types often reviewed limits options as a mechanism to offset premium increases.
Deductibles (Flat) Deductibles were relatively flat except for risks with a poor loss history.
Coverages (Stable) Expiring coverages were achieved in most cases.
A Look Ahead (Moderate) Current market conditions are expected to continue. Large, well-performing risks may experience market improvement as competition increases.
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