Market Dynamics Overview
Pricing:
Pricing remains up to varying degrees; however, increases are decelerating.
Capacity:
New capacity continues to flow into the market; capacity is tight but sufficient for all but the largest / most complex placements (especially D&O).
Underwriting:
Information requests continue to be more detailed and rigorous. Insurer decision making is more centralized.
Limits:
Insurers are continuing to apply sub-limits to cap their overall exposure due to increased focus by technical and actuarial teams.
Deductibles:
Deductibles are trending upward as a mechanism to shift some of the risk and help offset pricing increases.
Coverages:
Insurers are mandating clarifications and exclusions for silent cyber, infectious disease and contingent business interruption.
Reinsurance:
New capital has come into the market and reinsurers continue to evaluate new areas for growth.
Claims:
Information requests can be onerous, and timelines can be challenging. Engagement of external counsel continues to bring challenge to the process.