Q4 Automobile Summary
Overall (Moderate)
Driven partially by COVID-induced better-than-expected loss performance, market conditions are stabilizing and slowly becoming more favorable.
Pricing (+1-10%)
Price increases are primarily related to inflation, with a few performance based corrections.
Capacity (Constrained) Capacity has contracted, driven mostly by insurer mergers and insurers withdrawing from this space. There is little appetite or capacity for passenger transport, rental business and courier risks.
Underwriting (Prudent) Underwriting has shifted to central teams and is rigorous. Appetite for well-performing risk types is increasing but is limited for large fleet and non-standard risks.
Limits (Flat) Expiring limits can be achieved in most cases. Only specialized risks such as hazardous substance transport are experiencing limits constraints.
Deductibles (Flat) Expiring deductibles can be achieved in most cases.
Coverages (Stable) Expiring coverages can be achieved in most cases. There is minimal discussion related to COVID-19.
A Look Ahead (Moderate) Current market conditions are expected to continue; however, when normal activities ultimately resume so, too, will levels of traffic and related claims, and insurers will respond accordingly.
Q4 Cyber Summary
Overall (Challenging)
Market conditions remain challenging. Pricing continues to escalate and underwriting requirements have become onerous for insureds.
Pricing (>+30%)
Severe rate increases continue, driven by heightened risk complexity coupled with escalating claims frequency and severity.
Capacity (Constrained) Capacity continues to tighten, with insurers reducing capacity nearly across-the-board.
Underwriting (Rigorous) Underwriting is rigorous, with extensive, detailed information required.
Limits (Decreasing) Limits are decreasing, as insureds explore options for managing premium costs.
Deductibles (Increasing) Significant deductible increases are being mandated by insurers seeking to encourage positive risk behaviors and control their exposure.
Coverages (Restricting) Coverage - especially related to ransomware – is tightening significantly.
A Look Ahead (Challenging) Current, difficult, market conditions are expected to continue.
Q4 Property Summary
Overall (Challenging)
While market conditions have generally improved, they remain challenging, especially for poor performing risk types such as food, feed, waste, and chemicals.
Pricing (+1-10%)
Single-digit rate increases can be achieved in most cases; however, distressed risks are still facing significant increases.
Capacity (Constrained) Capacity remains constrained and is serving to keep pricing modestly elevated.
Underwriting (Prudent) Insurers are cautious yet demonstrating some flexibility, especially for well-performing risks with robust underwriting information.
Limits (Flat) Expiring limits can be achieved in most cases.
Deductibles (Flat) While expiring deductibles can be achieved in most cases, some insureds are exploring deductible increases as a mechanism for helping to offset premium increases.
Coverages (Stable) Expiring coverages can be achieved in most cases.
A Look Ahead (Moderate) Market conditions are expected to moderate slightly.
Q4 Casualty/Liability Summary
Overall (Challenging)
Market conditions are challenging, with less capacity available on both primary and excess layers, increased pricing, intensified underwriting rigor, coverage restriction mandates, and slow insurer responses. Underwriting talent has become an issue for some insurers. There is more reliance on captives, when available.
Pricing (>+30%)
Rates have increased significantly; in the case of poor performing risks, extreme increases have been experienced.
Capacity (Constrained) Capacity is constrained, with less limit available on both primary and excess layers.
Underwriting (Rigorous) Underwriting has shifted to central teams and is now more conservative, rigorous and time-consuming. There is limited appetite for fossil fuel risks.
Limits (Decreasing) There is a growing trend to decrease sub-limits for Professional Liability and Recall.
Deductibles (Increasing) Insurers are mandating deductible increases as a way to maintain capacity targets. Insureds are exploring deductible increases as a mechanism to help offset premium increases.
Coverages (Restricting) Exclusions are being applied for cyber, pandemic, and ESG/climate change.
A Look Ahead (Challenging) A further hardening of the market is expected, with central underwriting control leading to a tightening of underwriting guidelines and more limited proposals at higher costs.
Q4 Directors and Officers Summary
Overall (Challenging)
While market conditions remain challenging, they have eased somewhat, with the key exception of risks that have experienced material COVID-19 impacts.
Pricing (+1-10%)
Price increases remain, but have decelerated from prior periods.
Capacity (Ample) Capacity is generally sufficient but can be constrained for risks that have experienced material COVID-10 impacts.
Underwriting (Prudent) Underwriting is sensible and conservative. Concern related to the social and economic environment continue.
Limits (Flat) Expiring limits can be achieved in most cases.
Deductibles (Increasing) Deductible increases are being mandated for company reimbursement and entity coverages.
Coverages (Stable) Expiring coverages can be achieved in most cases.
A Look Ahead (Challenging) Current, more moderate market conditions are expected to continue.
Q4 Trade Credit Summary
Overall (Soft)
Strong performance in this space has led to a favorable pricing environment, sufficient capacity, and healthy competition.
Pricing (+1-10%)
Pricing is flat to modestly up for most risks while new and well-performing risks may experience modest decreases.
Capacity (Ample) Capacity is sufficient for existing demand.
Underwriting (Flexible) Underwriting behaviors are reflective of insurer focus on growth and strong performance in this space.
Limits (Increasing) Limit increases have become common, particularly as costs of transportation, materials and energy increase.
Deductibles (Flat) Expiring deductibles are common.
Coverages (Stable) Expiring coverages are common.
A Look Ahead (Moderate) Current market conditions are expected to continue, with additional focus on detailed underwriting information.
United Kingdom Market Dynamics
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