Casualty/Liability
Market conditions remained stable. Local insurers were generally more competitive and growth-focused than international insurers. Most placements renewed at expiring pricing, although placements with significant US exposure faced growing pressure. Rate reductions could be achieved on some risks, especially where there was competitive pressure. Capacity gaps from international insurers which have reduced their participation were filled by growth-focused local insurers. Looking ahead, current market conditions are expected to continue. Insurers will continue to clarify their treatment of Silent Cyber risk.
Cyber
International insurers remained highly cautious in their underwriting; significant price increases continued, and coverage restrictions were imposed. Domestic insurers continued to offer less-restrictive coverage at more modest pricing. Market capacity remained sufficient. Looking ahead, current market conditions are expected to continue. Limits, deductibles and coverage will remain under pressure. Capacity is expected to remain sufficient.
Directors and Officers
Market conditions remained stable in Q3, with ongoing pricing deceleration and sufficient capacity for most risks, with the key exceptions of new business and COVID-impacted industries. While coverages were generally stable, some insurers introduced new territory restrictions. Looking ahead, market conditions are expected to continue to stabilize further, given that adjustments were already made at recent renewals.
Property
Market conditions remained challenging – even for well-performing risks – as insurers focused on improving portfolio performance. Rate increases were mandated for many risks. Flood limits were under pressure. Looking ahead, poor performing risks will continue to experience challenging market conditions while well-performing risks, once adjusted, may experience more moderate conditions, except for flood risk, which will remain under pressure.
Trade Credit
The insolvency rate remained lower than expected, so favorable market conditions continued. Insurer appetite was strong. Underwriting remained flexible and insurers continued to offer two-year policy periods, allowing clients to lock in at current pricing levels. Flat to slight reductions in rate were common. Inflation drove increases to Credit Limits. Looking ahead, the expiration of government support for COVID-19, combined with rising inflation and a weak yen are expected to lead to more bankruptcies, which in turn may result in insurer conservatism.
©2022 Aon plc. All rights reserved | Contact Us | Privacy Policy | Legal