Geography Trends Q2 EMEA and the UK


Market Dynamics

Q2 Automobile Summary

Overall (Moderate)

Overall conditions remained favorable as the market continued to perform favorably.

Pricing (Flat)

Rates remained unchanged and expiring pricing was achieved in most cases.

Capacity (Constrained) Some insurers have reduced their capacity resulting in a slightly constrained environment.

Underwriting (Flexible) Most risk types experienced a flexible and accommodating underwriting environment.

Limits (Increased) Statutory third-party liability limits increased in Italy.

Deductibles (Flat) Expiring deductibles were achieved in most cases.

Coverages (Stable) Expiring coverages were achieved in most cases.

A Look Ahead (Moderate) Current market conditions are expected to continue.

Q2 Cyber Summary

Overall (Challenging)

Market conditions remained challenging and volatile, characterized by rigorous underwriting, focused appetite, and significant rate increases..

Pricing (>+30%)

Significant rate increases continued as portfolio performance remained stressed.

Capacity (Constrained) Market capacity remained constrained.

Underwriting (Rigorous) Underwriting remained rigorous and centralized.

Limits (Decreased) Insurers continued to reduce their limits to manage the impact of continued claims growth.

Deductibles (Increased) Significant deductible increases were mandated, in some cases as much as five times the expiring deductible.

Coverages (More Restrictive) Coverage restrictions continued to be applied.

A Look Ahead (Challenging) It is expected that current market conditions will continue as insurers continue to manage their appetite, capacity and coverages.

Q2 Property Summary

Overall (Challenging)

Market conditions remained challenging – especially for risks placed in the international market and poorly-performing risks – but moderated slightly as a result of improved underwriting performance. Confidence related to long-term agreements remained low; they were generally offered only with a rate increase in the second year.

Pricing (+1-10%)

Rate increases were modest overall especially for well-performing risks, while poorly-performing and natural-catastrophe exposed risks experienced significant rate increases.

Capacity (Constrained) Despite new capacity entering the market, capacity remained constrained.

Underwriting (Rigorous) Although there was a focus on growth for many insurers, underwriting remained rigorous and conservative. Referral processes continued to limit underwriter appetite and authority. Insured values were scrutinized due to inflation and increasing reconstruction costs.

Limits (Flat) Limits remained generally unchanged, although Contingent Business Interruption limits were scrutinized and modified on a case-by-case basis.

Deductibles (Flat) Deductibles were under pressure from international insurers, and, less often, from national insurers. Business Interruption periods increased due to extended reconstruction timeframes. When a new insurer joined a panel, the deductible offered was often higher than the rest of the program.

Coverages (More Restrictive) Coverage expansions were typically not available, although there was some space to improve Cyber exclusions. Coverage for risks in Russia, Ukraine and Belarus was not available.

A Look Ahead (Moderate) A gradual moderation of the hard market is expected, although underwriting is likely to remain rigid. Distressed risks will remain under pressure.

Q2 Casualty/Liability Summary

Overall (Soft)

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.

Pricing (Flat)

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 (Ample) Capacity was sufficient, with restrictions experienced primarily in challenging industries or risks with heavy US exposure.

Underwriting (Prudent) Underwriting remained cautious and conservative in Q2.

Limits (Flat) Limits remained flat; expiring limits could be achieved in most cases.

Deductibles (Flat) 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.

Coverages (Stable) 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

Overall (Moderate)

Market conditions continued to moderate in Q2.

Pricing (+1-10%)

While price increases continued, they were modest relative to those seen in recent years.

Capacity (Ample) New capacity continued to flow into the market which filled the gaps left by previous reductions, and overall capacity became sufficient in Q2.

Underwriting (Prudent) Underwriting caution and conservatism continued in Q2, especially for US-exposed risks.

Limits (Flat) Flat 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) Market conditions are expected to continue to moderate.

Q2 Trade Credit Summary

Overall (Soft)

Claims performance has been favorable and as a result, there was continued strong competition in the market, accompanied by soft pricing.

Pricing (Down)

Strong performance in this space has led to strong appetite and competition, keeping downward pressure on rates.

Capacity (Ample) Capacity was sufficient, except in higher risk sectors such as commodities and energy.

Underwriting (Flexible) As insurers focused on growth, underwriting remained flexible and accommodating.

Limits (Flat) Expiring limits could be achieved; however, there was very little appetite to increase limits beyond their current high levels.

Deductibles (Decreased) Deductible decreases were broadly available.

Coverages (Broader) Insurers used coverages as a differentiator, hence expansions were generally available.

A Look Ahead (Soft) Current market conditions are expected to continue.

Netherlands Market Dynamics

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