Automobile
The market remained challenging. Regulatory requirements related to insurer premium growth have focused the appetite of the top insurers on well-performing risks only, and other regulations have in some cases resulted in fewer value-added service options available to insureds. Electric Vehicle appetite narrowed, and pricing increased in this space due to poor loss performance. Looking ahead, insurers and insureds will continue to experience less flexibility and fewer options as a result of the regulatory environment.
Casualty/Liability
Market conditions remained stable, with flat pricing, flexible underwriting and capacity that was at or near historically high levels. International insurers were cautious in their underwriting, especially for overseas risks, while local insurers were more flexible and accommodating, especially for low-medium risks and higher risks with low policy limits. Deductibles remained flat, but increases were often required for complex or critical products. Looking ahead, current market conditions are expected to continue, with increasing competition for small and mid-sized risks. Complex and critical products risks will likely continue to experience more challenging market conditions.
Cyber
Market conditions remained challenging as insurer appetite and capacity remained limited. Underwriting was stringent and rigorous. Centralized referral underwriting continued. Insurers managed their exposure through limit management strategies. Ransomware restrictions were common. Looking ahead, current market conditions are expected to continue until performance in this space improves and additional capacity enters the market.
Directors and Officers
Overall market conditions remained challenging, and concern related to Securities Class Action losses continued. US-listed risks remained very challenged while privately-held risks remained preferable. Price increases decelerated but remained significant in cases where expiring pricing was deemed insufficient. Underwriting became more accommodating as insurers sought to achieve growth targets. Looking ahead, current market conditions are expected to continue. New insurers – not affected by loss accumulation – may play a more important role on local risks.
Property
Pricing remained flat and appetite was healthy as local insurers competed for well-performing risks. Capacity remained sufficient; however, sub-limits were imposed for Business Interruption and related coverages, and capacity management strategies were applied to challenging risk types and geographies. Looking ahead, as insurers seek to achieve 2022 growth targets, year-end market conditions may become more favorable.
Trade Credit
Despite economic concerns, market conditions remained stable, with flat pricing, sufficient capacity and flexible underwriting. Insurers have, in 2022, focused on stability as a top priority. Looking ahead, as 2023 approaches, some changes in insurer strategies may emerge.
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