Automobile
Driven by positive market performance, conditions remained moderate, with flat to modest price increases. Insurer capacity contracted but remained generally sufficient. Underwriting was prudent as insurers remained focused on risk selection. Aggregate deductibles have become more common. Looking ahead, as insurers continue to prioritize profitable performance, underwriting and risk selection may become more conservative, leading to less favorable market conditions.
Casualty/Liability
The market remained competitive as insurers sought growth; however, appetite remained limited and market conditions were less favorable for Automotive industry risks and risks with significant US exposures. Well-performing risks with exposure increases could in some cases achieve rate decreases to maintain expiring premium levels. Underwriting remained meticulous and conservative. Some poor-performing risks experienced mandatory deductible increases. Coverage restrictions related to sanctions and PFAS became more common. Looking ahead, current market conditions are expected to continue and may become even more favorable.
Cyber
Portfolio performance remained stressed and market conditions remained challenging and volatile, characterized by rigorous and centralized underwriting, focused appetite, and significant rate increases. Insurers continued to reduce limits and increase deductibles to manage the impact of continued claims growth. Looking ahead, challenging market conditions are expected to continue.
Directors and Officers
Market conditions continued to moderate in Q3. While price increases continued, they were modest relative to those seen in recent years. Capacity was sufficient as new insurers continued to enter this space. Underwriting caution continued, especially for risks with US exposure. Looking ahead, current moderate market conditions are expected to continue.
Property
Modest rate increases continue, especially on challenging risk types. Full tower capacity could be challenging to secure for risks in high-hazard industries. Underwriting was rigorous, and robust information – especially related to investments made and lessons learned from losses - was critical to achieving superior results. Some insurers which had previously reduced appetite expanded back into this space. Looking ahead, market conditions are expected to generally improve; however, high-hazard industries such as steel and metals, pulp and paper, and chemicals are expected to continue to experience challenging market conditions.
Trade Credit
Favorable market conditions continued as insurers remained growth-focused, even despite a slight increase in loss ratios. Insurers were solutions-oriented. Capacity remained sufficient, although insurers closely watched for economic changes and were prepared to pull back. Some sectors, such as energy, experienced less favorable market conditions. Looking ahead, market conditions are expected to become less favorable if the anticipated economic slowdown comes to fruition and loss ratios deteriorate.
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