Automobile
Market conditions remained stable, even despite heavy flooding which has not had a major impact to most auto insurers’ portfolios. Some insurers used service as a differentiator. Local capacity remained abundant. Underwriting was flexible and accommodating. Looking ahead, current market conditions are expected to continue; however, insurers are closely monitoring flood impacts and may adjust accordingly.
Casualty/Liability
Market conditions have remained stable, with flat pricing (except on poor-performing risks), consistent underwriting guidelines, "as is" renewal terms and conditions, and sufficient capacity. Looking ahead, moderate market conditions are expected to continue.
Cyber
Overall market condition remains challenging. While price increases continued, they decelerated slightly from recent quarters. Insurer appetite remained selective, with insurers favoring excess layers with high attachment points. Underwriting became more rigorous related to system connectivity and security. Coverages tightened and sub-limits were applied to higher risk coverages such as ransomware. Looking ahead, focused and selective underwriting is expected to continue; however, as additional, detailed underwriting information is provided, underwriters will likely become more comfortable with cyber risk and may offer more capacity.
Directors and Officers
Modest price increases continued and, in some cases, decelerated, although insurers kept a watchful eye on reinsurance impacts and inflation. Capacity remained sufficient for most risks. Underwriting was focused on corporate strategies related to pandemic management and additional, related questions often arose. Looking ahead, moderate market conditions are expected to continue.
Property
Flood was a major underwriting concern. Some insurers began portfolio reviews for flood accumulation and suspended writing new business for smaller risks, residential risks, and other challenging risk types such as plastics, wooden, and paper risks. Some incumbent underwriters required reductions of flood limits for risks requiring reinsurance from the overseas market. The quality of risk and robustness of risk improvement plans were key underwriting considerations for both renewal and new business. Price increases were modest overall; however, more significant increases were experienced by risks requiring overseas reinsurance capacity. Looking ahead, appetite for challenging and non-preferred risk types such as residential, plastics, wooden and paper risks will remain limited. Flood coverage and portfolio accumulation will remain under scrutiny.
Trade Credit
Pandemic-related concerns continued to abate and market conditions were moderate overall. Insurers remained cautiously selective on risks in COVID-impacted industries while demonstrating a focus on growth for in-appetite risks. Actions taken during recent past renewals were reconsidered. Underwriting scrutiny was heightened for exports to emerging and geopolitically sensitive geographies. Looking ahead, current market conditions are expected to continue. Well-performing and large corporate risks will likely experience favorable market conditions while under-performing and smaller risks are expected to experience a more challenging environment.
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