Q2 Automobile Summary
Overall (Moderate)
Market conditions remained moderate in Q2. Key insurer concerns included inflationary pressures and increasing claims frequency.
Pricing (+1-10%)
Rate increases crept up slightly in Q2, increasing from the flat pricing seen in Q1.
Capacity (Abundant) Capacity remained abundant in Q2 and appetite was robust for most risks.
Underwriting (Prudent) Underwriting became more cautious in Q2 as insurer concerns related to claims frequency grew.
Limits (Flat) Expiring limits were achieved in most cases.
Coverages (Stable) Coverages remained stable in Q2 and expiring coverages were achieved in most cases.
A Look Ahead (Moderate) Current market conditions are expected to continue; however, insurers are carefully watching inflationary and claims trends and may modify their H2 strategies if needed.
Q2 Cyber Summary
Overall (Challenging)
Market conditions remained challenging in Q2. Ransomware attacks continued to impact insurer profitability, leading to a continued strengthening of underwriting rigor. Extensive underwriting information – including supplemental questionnaires – was required.
Pricing (>+30%)
Significant rate increases continued as loss frequency and severity – especially related to ransomware – remained high.
Capacity (Constrained) Capacity remained markedly constrained.
Underwriting (Rigorous) Underwriting remained stringent, with extensive and detailed information required.
Limits (Decreased) Insurers continued to limit their per-placement capacity.
Deductibles (Increased) Significant deductible increases continued in Q2, mostly driven by insurers but some initiated by insureds seeking to manage their premium costs.
Coverages (More Restrictive) Restrictions in coverage continued to be imposed, especially for challenging risk types such as ransomware, systemic risks and business interruption.
A Look Ahead (Challenging) Challenging market conditions are expected to continue. Insurer concern stemming from the geopolitical events in Eastern Europe is expected to remain elevated.
Q2 Employers Liability/Workers Compensation Summary
Overall (Moderate)
Market conditions remained stable in Q2.
Pricing (+1-10%)
Following the application of regulatory-required rate increases over the past few cycles, modest rate increases driven by insured loss history were prevalent in Q2.
Capacity (Abundant) Capacity remained abundant relative to demand.
Underwriting (Prudent) The underwriting environment moderated from Q1 but remained somewhat conservative.
Limits (Flat) Expiring limits were achieved in most cases.
Coverages (Stable) Coverage is statutorily determined and remained stable in Q2.
A Look Ahead (Moderate) Market conditions are expected to remain stable.
Q2 Trade Credit Summary
Overall (Soft)
Pricing remained soft in Q2. Claims performance remained favorable and the impact of geopolitical events in Eastern Europe remained minimal.
Pricing (Down)
Downward pressure on rates continued as favorable loss ratios led to healthy appetite and competition in the market.
Capacity (Ample) Capacity remained stable and sufficient in Q2 with no change from the previous quarter.
Underwriting (Flexible) Insurers remained focused on growth in Q2 and so underwriting was flexible.
Limits (Increased) Limits continued to increase as requested to accommodate growing needs.
Deductibles (Decreased) Deductibles decreased as requested by insureds.
Coverages (Broader) Q2 saw broad coverages across-the-board and very few restrictions were imposed.
A Look Ahead (Soft) Despite uncertainty caused by inflation and the geopolitical events in Eastern Europe, the market is expected to remain soft and insurers will likely continue to focus on growth.
Q2 Casualty/Liability Summary
Overall (Moderate)
Market conditions stabilized in Q2, with most risks experiencing modestly favorable conditions while others – especially insureds with US exposure – experienced more challenging conditions. Inflationary pressures have become a key area of concern.
Pricing (+1-10%)
Modest price increases continued but varied widely based on the technical performance of the risk.
Capacity (Ample) Capacity increased in Q2 as new insurers entered the Casualty/Liability market, which compensated for the capacity lost when some existing insurers reduced the size of their offerings.
Underwriting (Prudent) Underwriting remained rigorous, with little appetite for challenging risk types such as rail and pharmaceuticals.
Limits (Flat) Expiring limits were achieved in most cases.
Deductibles (Increased) Deductible increases continued to be explored in Q2 as a mechanism for offsetting premium increases.
Coverages (Stable) Expiring coverages were achieved in most cases with the key exception of exclusions related to the geopolitical events in Eastern Europe.
A Look Ahead (Challenging) Economic pressures are expected to increase which is likely to tighten market conditions, potentially leading to underwriting and pricing conservatism.
Q2 Directors and Officers Summary
Overall (Moderate)
The market experienced further stabilization in Q2, with competition strengthening as new insurers entered this space. Conditions overall were modestly favorable, especially as compared to the conditions seen in 2020 and 2021.
Pricing (Flat)
Pricing varied widely from based on primary versus excess, with the former seeing modest increases while the latter experienced decreases.
Capacity (Abundant) Having been constrained earlier in the year, capacity was abundant in Q2, mostly due to the entry of new insurers into the Spanish market and increased capacity offered by existing insurers.
Underwriting (Flexible) Driven by competitive forces as new capacity became available, the underwriting environment shifted markedly in Q2 to become more flexible and accommodating.
Limits (Flat) Expiring limits were achieved in most cases and sub-limits increased on a case-by-case basis.
Deductibles (Flat) Expiring deductibles were achieved in most cases.
Coverages (Stable) Expiring coverages were achieved in most cases with the exception of mandated exclusions related to the geopolitical events in Eastern Europe.
A Look Ahead (Moderate) As insolvency reforms continue, insurers are expected to remain conservative, especially related to primary coverage. Excess appetite is expected to remain strong, keeping capacity abundant and market pricing competitive.
Q2 Property Summary
Overall (Moderate)
Conditions varied widely based on risk size. The market for larger risks was moderate-to-challenging: insurers sought growth and new insurers entered this space, but appetite remained focused. Smaller and mid-sized risks experienced more challenging conditions, with limited capacity, constrained coverage terms, and material price increases.
Pricing (+1-10%)
Large risks experienced modest rate increases and some flat renewals while most small to mid-sized risks experienced significant increases.
Capacity (Ample) Larger risks experienced sufficient capacity and options while smaller and mid-sized risks saw a constrained market, especially when reinsurance was required.
Underwriting (Prudent) Regardless of risk size, underwriters adhered to guidelines stringently and required detailed underwriting information.
Limits (Flat) Expiring limits were achieved for larger risks while reductions were often imposed on smaller and mid-sized risks.
Deductibles (Flat) Expiring deductibles were achieved for larger risks while increases were often imposed on smaller and mid-sized risks.
Coverages (Stable) Coverage remained stable in Q2 with changes imposed only on a case-by-case basis.
A Look Ahead (Moderate) The large risk space is expected to experience moderate conditions, with some challenges depending on the global economy, natural catastrophe losses, and new capacity entering the market. The rest of the market is expected to continue to be challenging.
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