Q4 Automobile Summary
Overall (Moderate)
Insurer profitability continues, keeping conditions moderate for most sectors.
Pricing (Flat)
New pricing models (e.g., pay-per-use) are emerging. Expiring pricing can be achieved in most cases; however, it is becoming more difficult to avoid increases despite strong technical performance.
Capacity (Ample) With an abundance of insurers offering this coverage, capacity is sufficient.
Underwriting (Flexible) Insurer appetite is expanding into new segments (e.g., large fleets) and underwriting attitudes and behaviors reflect insurer focus on growth.
Limits (Flat) Expiring limits can be achieved in most cases.
Deductibles (Flat) Expiring deductibles can be achieved in most cases.
Coverages (Stable) Expiring coverages can be achieved in most cases.
A Look Ahead (Moderate) Current market conditions are expected to continue. New pricing models are expected to continue to gain momentum.
Q4 Cyber Summary
Overall (Challenging)
Market conditions are volatile and challenging, characterized by rigorous underwriting, focused appetite, and significant rate increases.
Pricing (>+30%)
Pricing is increasing across-the-board as portfolio performance is extremely challenged.
Capacity (Constrained) Capacity is constrained. Despite new capacity entering the market, it is not sufficient.
Underwriting (Rigorous) Underwriting remains rigorous and centralized – extensive, detailed information is required. Local underwriters have limited authority. Underwriting rigor is intensifying as insurers evaluate and enhance their underwriting approaches.
Limits (Decreasing) Insurers continue to reduce their maximum limits offered, and more layers / co-insurers are required to complete placements.
Deductibles (Increasing) Deductible increases are being mandated and new deductibles are being applied for ransomware events.
Coverages (Restricting) Coverage changes are often imposed in conjunction with capacity management strategies, particularly for ransomware risk.
A Look Ahead (Challenging) Current challenging market conditions are expected to continue.
Q4 Employers Liability/Workers Compensation Summary
Overall (Moderate)
As worker injuries have increased, market conditions have become less favorable. While capacity is generally sufficient, rate increases are the norm.
Pricing (+11-30%)
Rates are increasing as the National Institute for Insurance against Accidents at Work (INAIL) is exercising its right of subrogation against insurers more frequently.
Capacity (Ample) Capacity is sufficient and stable.
Underwriting (Prudent) Underwriting is more technical, conservative, and rigorous.
Limits (Flat) Expiring limits can be achieved in most cases.
Deductibles (Increasing) There is a general shift amongst insureds of exploring deductible changes as a mechanism to help manage premium costs.
Coverages (Stable) Coverage is regulated; expiring terms apply in most cases.
A Look Ahead (Moderate) Current market conditions are expected to continue.
Q4 Trade Credit Summary
Overall (Soft)
Trade Credit has performed well and there is optimism that this trend will continue. As a result, soft market conditions prevail.
Pricing (Down)
As a result of favorable claims performance, and in light of insurer focus on growth, pricing is favorable.
Capacity (Ample) Market capacity is sufficient based on current demand.
Underwriting (Flexible) Underwriters are focused on growth, and this is reflected in their underwriting practices.
Limits (Flat) Expiring limits are common.
Deductibles (Flat) Expiring deductibles are common.
Coverages (Stable) Expiring coverages are common.
A Look Ahead (Soft) Current market conditions are expected to continue.
Q4 Casualty/Liability Summary
Overall (Moderate)
After a prolonged period of soft market conditions, the market has moderated, with a notable contraction of capacity and material rate increases, especially for poor performing industries. Insurer appetite has narrowed and underwriting has become rigorous.
Pricing (+11-30%)
Pricing is up materially for most risks, with poor performing sectors, like automotive and life science, experiencing very challenging conditions.
Capacity (Constrained) Insurers have reduced their limits offered, requiring program structures to change; e.g., from a single policy issued by a single insurer to a layered placement with several insurer participants.
Underwriting (Prudent) Underwriting is more technical, and insurers are meticulous, particularly in their review of risks with US exposure, production exposure, and/or adverse claims experience.
Limits (Flat) While expiring limits can be achieved in most cases, some insureds are exploring program structure changes as a mechanism to help offset rising premium costs.
Deductibles (Increasing) While expiring deductibles can be achieved in most cases, some insureds are looking at program structure changes as a mechanism to help reduce premium costs.
Coverages (Stable) While expiring coverages can be achieved in most cases underwriters have become more conservative in offering new coverage extensions / broadening language.
A Look Ahead (Moderate) Current market conditions are expected to continue.
Q4 Directors and Officers Summary
Overall (Challenging)
Market conditions remain challenging but have moderated somewhat from 2020. While some new capacity has entered the market, it remains constrained overall. Insurers remain cautious and conservative when assessing both new and renewal risks. Poor performing sectors and risks, as well as start-ups, are experiencing very limited appetite and the most challenging market conditions.
Pricing (+11-30%)
Price increases continue, but have decelerated.
Capacity (Constrained) Insurers continue to reduce their lines, and more participants are required to complete placements. While some new capacity has entered the market, it is insufficient to fill the gap.
Underwriting (Rigorous) Underwriting remains rigorous and centralized – extensive, detailed information is required. Local underwriters have limited authority. Insurer appetite has refocused and in some cases, there is limited appetite for new business.
Limits (Flat) While total program limits can be achieved at expiring levels, more policies and insurers are required to complete placements.
Deductibles (Increasing) Side C deductibles are increasing, especially for risks with US exposure.
Coverages (Stable) Coverage is generally stable, although there is some contraction related to Cyber.
A Look Ahead (Challenging) Current market conditions are expected to continue.
Q4 Property Summary
Overall (Challenging)
Market conditions remain challenging, particularly for multi-national risks. Capacity is constrained, significant price increases are the norm, and deductible increases are being mandated (or selected by insureds as a mechanism for helping to mitigate premium increases).
Pricing (+11-30%)
Following a prolonged period of favorable market conditions, market pricing is now more challenged. While well-performing, non CAT-exposed risks may experience single-digit increases, poor-performing and/or CAT-exposed risks are experiencing more significant rate increases.
Capacity (Constrained) Insurers are reducing their participation, requiring more policies and insurers to complete placements.
Underwriting (Rigorous) Most risks placed with international insurers are referred to central teams, which are rigid and demanding. Local insurers are more flexible – within the context of the current hard market conditions. There is very limited appetite for risks with insufficient underwriting information and/or loss prevention measures.
Limits (Flat) There is a growing trend to reduce the sublimit for natural catastrophe coverage to help offset premium increases.
Deductibles (Increasing) There is a growing trend to increase the deductible for natural catastrophe coverage to help offset premium increases. In addition, many insurers are mandating deductible increases, even for well-performing risks, although some are offering buy-back options for Material and Consequential Damage and/or Machinery Breakdown.
Coverages (Stable) Expiring coverage terms can be achieved for most placements; however, Cyber and Communicable Disease exclusions continue to be mandated in some cases.
A Look Ahead (Challenging) Current market conditions are expected to continue until insurers have returned to a position of profitability.
Netherlands Market Dynamics
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