Q3 Product Overview
Automobile
Despite a favorable 2020, modest rate pressure continues. Exposures have increased as economies have reopened, and loss costs have risen as parts costs have escalated.
Cyber
Loss frequency and severity – particularly related to ransomware – is increasing and insurers are remediating profitability concerns. Significant rate increases, capacity contraction, and ransomware clarifications and sub-limits have become common.
Property
While pricing remains challenged, new capacity is having a stabilizing effect. Declarations of value and related sums insured have come under scrutiny. Robust risk information – including engineering reports – has become a key underwriting consideration. Restrictions for Contingent Business Interruption continue to be required.
Casualty/Liability
Conditions are moderate and capacity issues continue for some Excess placements. Key underwriting concerns include communicable diseases, opioids, sexual abuse, climate change / (wild)fire, chemical compounds, and US-domiciled risks (on non-US placements).
Directors & Officers
Hard market price and capacity adjustments have given way to more moderate conditions and attracted new capital, creating competition. Large limits; however, continue to drive capacity challenges and associated premium pressures.
