Q4 Market Dynamics
Pricing
A positive rate environment continues, but increases have moderated, and volatility has stabilized, with the most notable exception of Cyber.
Capacity
New capacity has entered the market and is being deployed strategically, with a focus on minimizing volatility.
Underwriting
Appetite is expanding as insurers focus on profitable growth. Underwriting discipline, rigor and scrutiny continue to strengthen. Risk differentiation is more important than ever.
Limits
While most risks are renewing with total limits at expiring levels, there is a growing trend amongst insurers to reduce maximum limits offered, leading to more layers and coinsurance per placement. Sub-limits for high-hazard risks are under pressure.
Deductibles
Deductibles have stabilized as broad mandates have been applied, although further adjustments are required in market segments where underwriting performance remains strained.
Coverages
Following the exclusionary language modifications that were imposed on recent renewals, coverage has now stabilized across most lines. Coverage areas to watch: climate change and sustainability.
Trends by Line of Business
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