Q3 Market Dynamics Overview
Rates
New capacity, reduced uncertainty, and past pricing adjustments have served to stabilize pricing for most products, with the most notable exception of Cyber.
Underwriting
Insurers are scrutinizing risk through underwriting rigor and stringency – often applied by central underwriting teams who are now involved in decision-making where authority previously existed with local teams.
Deductibles
Deductibles remain generally stable, although insurers are increasingly focused on moving away from “working layer” losses.
Capacity
Current pricing levels have increased appetite and attracted capacity in some spaces. Traditional and alternative sources of capital are sufficient for all but the largest risks.
Limits
Changes to limits are driven mostly by insureds as a result of exposure changes and/or to support premium cost management strategies.
Coverages
Clarifications and exclusions related to Infectious Disease, Cyber, and Contingent Business Interruption have already been implemented and there is minimal insurer interest in changing positions in these areas.
