Automobile
Market conditions remained moderate in the face of competing market forces. On one hand, continued inflation, parts shortages, and increased claims costs led to underwriting stringency and conservatism, and upward pricing pressure, but on the other hand, insurer growth focus led to abundant capacity and strong value propositions, and served to dampen rate increases. Looking ahead, current market are expected to continue.
Casualty/Liability
Market conditions were modestly challenging and varied widely by sector. While preferred risk types experienced moderate conditions, with ample capacity and "as is" limits and deductibles, more challenging sectors such as oil and gas, chemicals, mining, auto parts and hospitality experienced less favorable conditions including significant rate increases and stringent underwriting. Looking ahead, current market conditions are expected to continue.
Cyber
Market conditions remained challenging, characterized by significant rate and deductible increases, coverage restrictions – especially, related to systemic events - and coinsurance for ransomware,.
In addition, capacity remained highly constrained and facultative reinsurance was often required to complete placements. Looking ahead, constrained capacity is expected to lead to a challenging environment.
Directors and Officers
The market transition that began in Q2 for privately owned firms continued into Q3 as new capacity mobilized and price increases decelerated materially. Flat pricing and, in some cases, reductions could be achieved. Underwriting became more flexible but continued to require detailed underwriting information. Looking ahead, current market conditions are expected to continue.
Property
Stable conditions continued into Q3. Insurers remained cautious in capacity deployment and proportional schemes were common. Driven partially by treaty arrangements, underwriting caution and rigor remained strong. Satisfactory engineering reports were a pre-requisite for insurers to increase – or even maintain – current capacity levels. Local insurers were limited in their ability to provide additional capacity when needed. Looking ahead, market conditions are expected to further ease, although rigorous underwriting trends are likely to continue.
Trade Credit
The market remained competitive as appetite strengthened and new capacity mobilized. Insurers remained growth focused. At the same time, demand for Trade Credit coverage remained healthy as organizations sought solutions to transfer credit risk. Looking ahead, as challenging economic conditions persist, insurers may become more conservative, especially related to vulnerable risk types.
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