Q2 Automobile Summary
Overall (Moderate)
As mobility continued to increase, so too did claims frequency. In parallel, rising inflation and a shortage of parts have driven up repair costs and increased claims costs. In response, pricing remained somewhat challenged in Q2.
Pricing (+1-10%)
Rate increases continued in Q2 in response to inflation and rising loss costs.
Capacity (Abundant) Following capacity increases stemming from insurers’ efforts to increase their market share, capacity was abundant in Q2.
Underwriting (Prudent) Rising loss costs have led to greater underwriting stringency and conservatism as insurers focus on profitability.
Limits (Flat) Expiring limits were achieved in most cases.
Deductibles (Flat) Expiring deductibles were achieved in most cases.
Coverages (Broader) Insurers offered various coverage options (e.g., related to heavy equipment) to strengthen their value propositions.
A Look Ahead (Moderate) As costs continue to rise, further pricing adjustments are expected, as well as more challenging underwriting.
Q2 Cyber Summary
Overall (Challenging)
Market conditions remained challenging, characterised by low appetite, a lack of primary capacity, restrictions and coinsurance on ransomware cover, and high rates and deductibles.
Pricing (>+30%)
Rates continued to increase steeply, reflecting growth in loss frequency and severity.
Capacity (Constrained) Capacity remained highly constrained; facultative reinsurance was often required to complete placements.
Underwriting (Rigorous) Underwriting has been stringent and rigorous, with detailed supplemental questionnaires and loss records required.
Limits (Decreased) Limit decreases were imposed in most cases.
Deductibles (Increased) Deductible increases remained common.
Coverages (More Restrictive) Coverage restrictions continued to be imposed, particularly with regard to ransomware cover.
A Look Ahead (Challenging) Current, challenging market conditions are expected to continue.
Q2 Property Summary
Overall (Moderate)
The market remained generally stable in Q2. Insurers continued to be cautious in capacity deployment and proportional schemes remained common. Driven partially by treaty arrangements, underwriting caution and rigor remained strong.
Pricing (Flat)
While flat pricing was often proposed by insurers, well-performing risks experienced competition which in some cases led to rate reductions. Rates for complex risks experienced flat or slightly increased pricing.
Capacity (Constrained) Satisfactory engineering reports have been a pre-requisite for insurers to increase – or even maintain – current capacity levels. Local insurers have been generally more open to providing capacity but have been limited in their ability to do so.
Underwriting (Rigorous) Underwriting information remained very important. Many insurers have been reluctant to provide a quote without engineering reports and a five-year loss history.
Limits (Flat) Expiring limits could generally be achieved. Limit increases were needed in some cases to cover exposure growth.
Deductibles (Flat) Expiring limits could be achieved in most cases.
Coverages (Stable) Expiring coverages could be achieved in most cases with the key exception of mandatory exclusions related to strikes, riots and civil commotion. For well-performing risks, conditions were relatively easy to negotiate.
A Look Ahead (Soft) Market conditions are expected to further ease, although rigorous underwriting trends are likely to continue.
Q2 Casualty/Liability Summary
Overall (Moderate)
Market conditions have varied depending on industry type. Most sectors experienced moderate conditions, with ample capacity and "as is" limits and deductibles, while more challenging sectors such as oil and gas, chemicals, mining, auto parts and hospitality experienced less favorable conditions. For challenging sectors, insurers were open to offering coverage, but rates were higher despite client expectations of lower costs.
Pricing (+1-10%)
Pricing increased overall, the extent of which varied by industry type. Preferred risks such as local manufacturing saw flat rates, while more challenging, complex risk types experienced rate increases.
Capacity (Ample) Local capacity has been sufficient for most risks and, where additional capacity has been needed, it has broadly been available via coinsurance or in the international/reinsurance market.
Underwriting (Prudent) Underwriting rigor varied significantly depending on the industry, with greater scrutiny applied to risks in challenging, complex and/or poor-performing sectors.
Limits (Flat) In general expiring limits could be achieved. Increases were available in some cases; however, many insureds chose to maintain existing limits.
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 to vary based on industry and risk type, with preferred risks experiencing more favorable conditions.
Q2 Directors and Officers Summary
Overall (Moderate)
The D&O market for private entities reached an inflection point in Q2, with the market seeing more capacity and, in some cases, price reductions, with the key exception of risks with ADRs for which the market remained challenging.
Pricing (Flat)
Pricing transitioned to a generally flat market, with price decreases for some favorable risk types.
Capacity (Ample) Capacity was sufficient for most risks.
Underwriting (Flexible) Underwriters have demonstrated some flexibility. While sufficient information remained important, underwriters have been more accommodating.
Limits (Flat) Expiring limits could be achieved in most cases.
Deductibles (Flat) Expiring deductibles could be achieved in most cases.
Coverages (Stable) Expiring coverages could be achieved in most cases.
A Look Ahead (Moderate) Current market conditions are expected to continue.
Q2 Trade Credit Summary
Overall (Soft)
The market continued to show greater capacity and flexibility in Q2, following the significantly more challenging conditions of prior years.
Pricing (Flat)
Pricing remained generally flat, with slight increases seen in loss-prone industry sectors such as construction, oil and gas, and textiles.
Capacity (Abundant) Capacity was abundant across most sectors, provided by existing local insurers and new market entrants.
Underwriting (Flexible) Underwriters continued to demonstrate flexibility in their terms and conditions.
Limits (Increased) Inflationary pressures have led to limits increases.
Deductibles (Decreased) Deductible decreases could be achieved and in some well-performing segments, deductibles could be eliminated.
Coverages (Stable) Despite the impact of inflation, coverages remained generally stable.
A Look Ahead (Moderate) Insurers are cautiously watching for potential impacts related to political changes, social conflict and supply chain issues, and may become more conservative as a result.
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