Automobile
As insurers aggressively competed for new business, market conditions were moderately favorable. Flat pricing was common for poorer-performing risk types while price reductions were achieved for well performing risks. Underwriting remained focused on profitability. There was limited appetite for fleet risks. Looking ahead, current market conditions are expected to continue despite the withdrawal of capacity from the market. A competitive market is expected to continue as insurers seek profitable growth. When appropriate, early and proactive remarketing remains critical to achieving favorable outcomes.
Casualty/Liability
Local and regional programs experienced flat renewals or modest decreases while global programs experienced generally flat renewals. Insurers competed aggressively for new well-performing businesses. Capacity was abundant and underwriting was flexible; alternative limit, deductible and coverage options were easily secured. Looking ahead, current market conditions are expected to continue.
Cyber
Market conditions remained challenging with rigorous and rigid underwriting coupled with significant price increases, even for risks previously adjusted. Coverage restrictions continued as insurers sought to align with the global market. Limits and deductibles remained under pressure. Looking ahead, current market conditions are expected to continue
Directors and Officers
Market conditions have moderated, with the key exceptions of higher-risks sectors (e.g., SPACs) and risks with adverse claims experience. Smaller risks experienced flat pricing while larger and less-preferred risks experienced increases. Capacity remained notably constrained for Hong Kong SPACs. Insurers continued to maintain global mandates restricting coverage related to geopolitical events in Eastern Europe. Looking ahead, favorable market conditions are expected for smaller risks and competition on excess capacity will drive continued moderate conditions on complex risk types.
Property
Local market conditions remained stable; favorable risks experienced modest rate reductions while poor-performing risks experienced a more challenging pricing environment. Underwriting scrutiny was applied to risks based in Ukraine, Russia, Eastern Europe and Myanmar, and coverage for related exposures was limited. Natural catastrophe risks continued to drive technical pricing considerations. Looking ahead, market conditions are expected to further stabilize, especially for risks which faced prior adjustments. Available capacity is expected to be sufficient for most risks. Appetite will remain limited for poor-performing risks or those with insufficient underwriting information or loss prevention measures. Referral underwriting for multinational programs will remain rigid and demanding.
Trade Credit
Insurers kept a watchful eye on potential impacts from high inflation and supply chain disruption, but the market was moderate overall. Capacity remained sufficient and price reductions could be achieved on favorable risks as insurers competed for growth opportunities. Challenged risk types such as commodities and retail risks experienced less favorable market conditions. Looking ahead, insurers remain concerned about the geopolitical events in Eastern Europe and trade tensions between the US and China – either of which could disrupt current market conditions.
©2022 Aon plc. All rights reserved | Contact Us | Privacy Policy | Legal