The casualty market grows more competitive, with increasing signs of rate reductions. Premium decreases are common as insurers balance retention targets with heightened competition for new business.
Key takeaways
Insurers are under pressure to meet their 2024 targets, which could drive heightened competitiveness and more aggressive underwriting strategies as year-end approaches.
- On average, the market remains stable, however, there are increasing signs of rate reductions.
- Premium reductions more commonplace due to retention targets coupled with competition for new business.
- Concerns remain around social and economic inflation (on cost of claims) and US exposures, in particular.
- Positive underwriting results leading to ambitious growth aspirations.
- Strategic use of facultative reinsurance to help manage the 'de-risking' versus growth challenge.
- Early engagement required with market (both direct and reinsurance) on more difficult risks to deliver 'relevant' placement solutions (price and coverage).
- Expectations of further insurer competition with corresponding downward pressure on rates in Q4.
- Insurers paying increasing attention to portfolio density with insureds and looking to cross-sell across multiple lines of business.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.