Q4 Automobile Summary
Overall (Moderate)
Loss ratios have returned to pre-pandemic levels and, as a result, market pricing is increasing, even despite a competitive environment.
Pricing (+1-10%)
As losses increase, pricing has escalated. Modest price increases are the norm.
Capacity (Ample) Supply issues related to electronic components have reduced new car sales, in turn, reducing demand for related coverages. Capacity is sufficient to meet existing demand.
Underwriting (Prudent) Underwriters are cautious and focused on technical results.
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.
Q4 Cyber Summary
Overall (Challenging)
Market conditions are becoming more challenging following further loss ratio deterioration stemming from both frequency and severity of losses. Pricing and deductibles are increasing materially, capacity is constrained, and retentions and coinsurance requirements are increasing significantly for ransomware.
Pricing (>+30%)
Severe rate increases are being imposed as a result of increasing loss frequency and severity.
Capacity (Constrained) Capacity is significantly constrained; facultative reinsurance is often required to complete placements.
Underwriting (Rigorous) Underwriting is stringent and rigorous, with detailed supplemental questionnaires and loss records required.
Limits (Flat) Expiring limits can be achieved in most cases.
Deductibles (Increasing) Deductible increases are being imposed in most cases. Coinsurance percentages are increasing for ransomware coverage.
Coverages (Restricting) Coverage restrictions are being imposed in most cases.
A Look Ahead (Challenging) As cyber risks continue to become more complex and global in nature, insurer appetite is expected to become more focused, capacity constraints are expected to continue, and coverage clarifications and exclusions are expected to continue to be mandated.
Q4 Property Summary
Overall (Moderate)
The market is stable overall. Insurers are deploying capacity cautiously. Proportional schemes have become more common. Underwriting scrutiny is high, driven by reinsurance treaties. Complex risks continue to experience a challenging reinsurance market.
Pricing (+1-10%)
Most risks are experiencing “as is” pricing or modest increases. Well-performing risks may, in some cases, experience modest discounts.
Capacity (Constrained) Local insurers are conservative in their capacity deployment, and are reducing their capacity on a per-risk basis.
Underwriting (Rigorous) Underwriting information – including engineering reports – has become critical and is, for many insurers, a prerequisite to providing a quote.
Limits (Flat) Expiring limits can be achieved in most cases; however, some insureds are exploring alternatives to help offset rising premiums.
Deductibles (Flat) Expiring can be achieved in most cases; however, some insureds are exploring alternatives to help offset rising premiums.
Coverages (Stable) Expiring coverages can be achieved in most cases.
A Look Ahead (Moderate) Underwriting rigor is expected to continue to strengthen as insurer expectations related to controls and safety measures increase.
Q4 Casualty/Liability Summary
Overall (Challenging)
Insurers remain conservative, especially for industries and risk types such as travel and entertainment, pharmaceuticals, and Professional Liability, where pricing and deductibles are increasing materially while coverage continues to tighten.
Pricing (+11-30%)
The pricing environment remains challenging, particularly for poor-performing risk types.
Capacity (Constrained) Capacity is constrained, particularly for poor-performing risk types.
Underwriting (Rigorous) Underwriting is rigorous and focused on the attributes and performance of the individual risk as well as the historic loss ratio of the client industry.
Limits (Decreasing) Expiring limits may be difficult to achieve using the same insurers and structure, requiring a restructuring of the program possibly complemented by facultative reinsurance.
Deductibles (Increasing) Deductible increases are being mandated.
Coverages (Restrictive) Restrictive definitions and clauses are being mandated.
A Look Ahead (Challenging) Current market conditions are expected to continue.
Q4 Directors and Officers Summary
Overall (Challenging)
Frequency of incidents/claims has risen – not only for listed companies but also for private companies, further exacerbating already challenging market conditions.
Pricing (>+30%)
Pricing has increased materially for all risks, with the most significant impacts experienced by listed companies.
Capacity (Constrained) Local capacity has contracted and the use of facultative reinsurance on a non-proportional basis is often required.
Underwriting (Rigorous) Underwriting is rigorous and there is minimal flexibility for coverage extensions or modified coverage language.
Limits (Flat) Expiring limits can be achieved in most cases.
Deductibles (Increasing) Insurers have issued mandates to increase deductibles across-the-board.
Coverages (Restricting) Coverage restrictions are being imposed for specific industries and risk types.
A Look Ahead (Challenging) Market conditions are expected to continue to be challenging as reputational and other related risks become more complex.
Q4 Trade Credit Summary
Overall (Moderate)
Credit insurers are refining their appetite. They prefer lower-risk sectors and are approaching COVID-19 impacted sectors with extreme caution.
Pricing (Flat)
Flat pricing can be achieved in most cases; however, rates remain higher than they were pre-pandemic.
Capacity (Ample) Capacity is sufficient; however, large limits require special underwriting approval which tends to delay the underwriting process.
Underwriting (Prudent) Underwriters are cautious and requiring more financial information to understand the risk.
Limits (Flat) Expiring limits can be achieved in most cases.
Deductibles (Flat) Expiring deductibles can be achieved for well-performing risks while risks with losses may be required to increase their deductibles.
Coverages (Stable) Industries such as construction, metal, and tourism may experience a coverage contraction while expiring coverages can be achieved for other risk types.
A Look Ahead (Moderate) The market is expected to become more competitive for risks that provide robust underwriting details.
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