Q2 Casualty/Liability Summary
Overall (Moderate)
Market conditions remained stable in Q2. Local insurers tended to be more competitive and growth-focused than international insurers.
Pricing (Flat)
Expiring pricing could be achieved in most cases; however, risks with significant US exposure experienced upward pricing pressure from international insurers. On some risks experiencing competition, rate reductions could be achieved.
Capacity (Ample) Capacity was sufficient for most risks. Gaps that resulted from the reduction of capacity by international insurers were filled with capacity from growth-focused local insurers.
Underwriting (Prudent) Underwriting was generally prudent but flexibility was demonstrated for well performing risks and for large risks where there was increased competition.
Limits (Flat) Expiring limits were achieved in most cases.
Deductibles (Flat) Expiring deductibles were achieved in most cases.
Coverages (More Restrictive) Insurers continued to clarify their treatment of Silent Cyber risk to exclude losses arising from cyber attacks.
A Look Ahead (Moderate) Current market conditions are expected to continue, with sufficient capacity and flat pricing.
Q2 Directors and Officers Summary
Overall (Moderate)
Market conditions remained stable in Q2, with ongoing pricing deceleration and sufficient capacity for most risks.
Pricing (+1-10%)
Most placements renewed at expiring pricing in Q2 though there were some exceptions.
Capacity (Ample) Capacity has been sufficient for most risks, with some constraints for new business and industries severely affected by COVID-19.
Underwriting (Prudent) Underwriting has been stable; however, detailed information has been required, especially for industries which suffered negative impacts from COVID-19.
Limits (Flat) Expiring limits were achieved in most cases.
Deductibles (Flat) Expiring deductibles were achieved in most cases.
Coverages (Stable) While coverages were generally stable, some insurers introduced new territory restrictions.
A Look Ahead (Moderate) Market conditions are expected to continue to stabilize further, given that adjustments were already made at recent renewals.
Q2 Trade Credit Summary
Overall (Soft)
The insolvency rate remained lower than expected in Q2 and so favorable market conditions continued. Insurer appetite was strong and rate reductions were commonly seen across the board.
Pricing (Down)
Rate reductions were common, particularly for two-year policies.
Capacity (Ample) Capacity was abundant in Q2 because of low insolvency rates and favorable performance.
Underwriting (Flexible) Underwriting remained flexible and insurers continued to offer two-year policy periods, allowing clients to lock in lower premiums.
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) Current market conditions are expected to continue. However, higher interest rates and a deterioration of economic conditions may lead to increased insurer conservatism.
Q2 Cyber Summary
Overall (Challenging)
Market conditions remained challenging. International insurers were highly cautious, which resulted in price increases and constrained coverage. Local insurers tended to offer more favorable terms but have become notably more conservative.
Pricing (+11-30%)
Significant rate increases continued in Q2, with most insureds experiencing a double-digit rise.
Capacity (Ample) Capacity remained stable as local insurers continued to fill the gaps left by the withdrawal of capacity from international insurers.
Underwriting (Prudent) Underwriting remained rigorous and underwriters required detailed underwriting information..
Limits (Decreased) Expiring limits could be achieved on well-performing risks while many risks continued to experience limit reductions.
Deductibles (Increased) Deductible increases were applied, but on a case-by-case basis.
Coverages (More Restrictive) International insurers continued to impose coverage restrictions, and more local insurers also began to restrict coverage in Q2.
A Look Ahead (Challenging) Current market conditions are expected to continue. Underwriting will remain highly conservative and demanding, and rates will continue to climb.
Q2 Property Summary
Overall (Challenging)
Market conditions remained challenging as insurers focused on improving portfolio performance.
Pricing (+1-10%)
Rate increases continued in Q2. While they were generally modest, Natural Catastrophe-exposed risks experienced more significant impacts.
Capacity (Constrained) Capacity was constrained, particularly for Earthquake and Flood risks.
Underwriting (Prudent) There has been minimal change in the underwriting environment, which has remained moderately conservative. Underwriters demonstrated flexibility for preferred risk types.
Limits (Decreased) Limits remained generally stable; however, reductions in Earthquake and Flood sub-limits were experienced.
Deductibles (Flat) Expiring deductibles were achieved in most cases. Zero deductibles were still achievable for well-performing (claims-free) risks.
Coverages (Stable) Expiring coverages were achieved in most cases.
A Look Ahead (Challenging) Challenging market conditions are expected to continue.
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