Q2 Casualty/Liability Summary
While differences were experienced from insurer to insurer, overall, the market began to experience a slight softening. Risks relating to the automotive industry, however, remained challenged.
Some insurers remained focused on returning to profitability and proposed rate increases accordingly, while others were focused on growth and proposed flat or reduced rates. In either situation, inflationary pressures on exposures meant that premiums did not decrease.
Capacity was sufficient, with restrictions experienced primarily in challenging industries or risks with heavy US exposure.
Underwriting remained cautious and conservative in Q2.
Limits remained flat; expiring limits could be achieved in most cases.
Expiring deductibles could be achieved in most cases with the key exception of poorly- performing risks. In some cases, insureds continued to seek deductible increases as a mechanism for offsetting premium costs.
Expiring coverages could be achieved in most cases, with the exception of newly mandated restrictions on sanctioned countries.
A Look Ahead (Soft)
Current market conditions are expected to continue, with a possible further transition to a soft market.
Q2 Directors and Officers Summary
Market conditions continued to moderate in Q2.
While price increases continued, they were modest relative to those seen in recent years.
New capacity continued to flow into the market which filled the gaps left by previous reductions, and overall capacity became sufficient in Q2.
Underwriting caution and conservatism continued in Q2, especially for US-exposed risks.
Flat limits were achieved in most cases.
Expiring deductibles were achieved in most cases.
Expiring coverages were achieved in most cases.
A Look Ahead (Moderate)
Market conditions are expected to continue to moderate.
Q2 Trade Credit Summary
Claims performance has been favorable and as a result, there was continued strong competition in the market, accompanied by soft pricing.
Strong performance in this space has led to strong appetite and competition, keeping downward pressure on rates.
Capacity was sufficient, except in higher risk sectors such as commodities and energy.
As insurers focused on growth, underwriting remained flexible and accommodating.
Expiring limits could be achieved; however, there was very little appetite to increase limits beyond their current high levels.
Deductible decreases were broadly available.
Insurers used coverages as a differentiator, hence expansions were generally available.
A Look Ahead (Soft)
Current market conditions are expected to continue.