![]() ![]() ![]() The middle market segment continues to stabilize and, in some areas, has improved for buyers in capacity and rate.Īn increased level of competition from cyber underwriters has led to more nominal rate increases when organizations can demonstrate good cyber security controls year over year. The market for international casualty remains healthy and competitive, with ample capacity made available from carriers who continue to invest in tools and resources to deliver solutions to insureds. Workers compensation continues to provide underwriting profit, maintaining a steady primary casualty marketplace. Premium increases for most insureds will be driven by inflationary construction costs, heightened reinsurance pressures and possible catastrophe capacity constriction. Availing yourself of these resources will help make you and your organization all the more ready to face the ongoing challenges that lie ahead.įor more insight on how you can prepare for a challenging marketplace, contact your local WTW representative. Work closely with your risk management partners - carriers and brokers - to make the most of the opportunities that do present themselves. Use all the tools available to you, especially the analytic tools that steadily improve in their predictive value and ease of use. There are opportunities in the marketplace, which puts an increasing emphasis on the importance of analyzing and understanding your risks and being prepared to present them clearly and effectively to underwriters. So, while the grip of the hard market is loosening, buyers are not yet free from it. Premium increases for most insureds will be driven by inflationary construction costs, heightened reinsurance pressures and possible catastrophe capacity constriction, while valuation of assets will be the key topic of conversation in 2023.Here are some highlights from our 2023 predictions: Extreme weather of all kinds strikes in places where we haven’t seen it before, and places we’ve seen it all too often. Wildfire, not high on our lists a ten years ago, remains on our lists now. Whatever the fallout from the 2022 hurricane season, natural catastrophes loom large for our industry. With retail insurers making immediate adjustments to catastrophe capacity and rate, reinsurers are telegraphing grim renewal conditions for 2023, which would compound the rate and structural pressures we experience today. However, the commercial response has been swift and dramatic. While ultimate economic costs will take some time to play out, there is no doubt that Ian losses lean heavier on the personal lines side than the commercial side. In addition to the personal tragedies that resulted from the punishing landfall, this was a big, albeit unique, loss event. This brings us to the second macro factor we are focused on: Hurricane Ian.Įxtreme weather of all kinds strikes in places where we haven’t seen it before, and places we’ve seen it all too often. This retrenchment is not solely driven by inflation but also by the continuing procession of loss events pushed by the extremes of weather. Property insurers have rekindled their tenacity to drive rate. But insurers have been dealing with these forces for some time now, and pricing adequacy is beginning to turn the market for buyers-rate reductions are possible and even approaching double digits in the best scenarios. On the casualty side, nuclear verdicts fueled by social inflation continue to push tort costs and, subsequently, claims costs higher. Carriers, meanwhile, must recalibrate portfolios based on their growing potential exposure. On the property side, every buyer is challenged to accurately assess and present replacement cost values that go up as the cost of labor and materials goes up. The Consumer Price Index and slipping purchasing power may headline the news, but there’s also wage inflation, medical inflation, and, as anyone in the casualty world will tell you, social inflation. The first of these factors is inflation in its many forms. ![]() Every buyer is challenged to accurately assess and present replacement cost values that go up as the cost of labor and materials goes up. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |