Commercial insurance market projects stability as rates moderate across most lines of business
WTW's latest Insurance Marketplace Realities report indicates stability in commercial insurance rates across North America for 2024. Key findings include:
- New capital in reinsurance and retail markets has increased competition, except in umbrella and excess liability.
- Capacity remains a driving force for soft market conditions in financial lines.
- The Cyber market projects flat to mid-single digit rate decreases for most renewals.
- Umbrella & Excess liability faces disruption due to rising loss costs, with renewal rates pushing past high single-digit.
The report predicts relatively stable renewal conditions across most lines, barring major disruptions like hurricanes. Key price predictions for 2024 include variations in Property, Casualty, Executive risks, and Political risk categories.
Il recente rapporto di WTW sulle realtà del mercato delle assicurazioni indica una stabilità delle tariffe assicurative commerciali in Nord America per il 2024. Le principali conclusioni includono:
- Il nuovo capitale nei mercati di riassicurazione e al dettaglio ha aumentato la competizione, ad eccezione delle assicurazioni umbrella e della responsabilità civile aggiuntiva.
- La capacità rimane una forza trainante per le condizioni di mercato favorevoli nelle linee finanziarie.
- Il mercato Cyber prevede una diminuzione delle tariffe da piatta a una variazione a cifra singola per la maggior parte delle rinnovazioni.
- Il mercato delle assicurazioni umbrella e della responsabilità civile aggiuntiva affronta interruzioni a causa dell'aumento dei costi delle perdite, con tassi di rinnovo che superano l'alta cifra singola.
Il rapporto prevede condizioni di rinnovo relativamente stabili nella maggior parte delle linee, fatta eccezione per le grandi interruzioni come gli uragani. Le principali previsioni sui prezzi per il 2024 includono variazioni nella categoria dei beni, della responsabilità civile, dei rischi esecutivi e dei rischi politici.
El último informe de WTW sobre las realidades del mercado de seguros indica estabilidad en las tarifas de seguros comerciales en América del Norte para 2024. Los hallazgos clave incluyen:
- Nuevo capital en los mercados de reaseguro y minoristas ha aumentado la competencia, excepto en las responsabilidades y coberturas adicionales.
- La capacidad sigue siendo una fuerza impulsora para las condiciones de mercado suaves en líneas financieras.
- El mercado cibernético proyecta disminuciones de tarifas de estables a de un solo dígito medio para la mayoría de las renovaciones.
- La responsabilidad adicional enfrenta interrupciones debido a los crecientes costos de pérdidas, con tasas de renovación que superan un alto dígito único.
El informe predice condiciones de renovación relativamente estables en la mayoría de las líneas, a menos que ocurran grandes interrupciones como huracanes. Las principales predicciones de precios para 2024 incluyen variaciones en las categorías de Propiedad, Responsabilidad, Riesgos Ejecutivos y Riesgos Políticos.
WTW의 최신 보험 시장 현실 보고서는 2024년 북미 전역에서 상업 보험 요율의 안정성을 나타냅니다. 주요 결과는 다음과 같습니다:
- 재보험 및 소매 시장의 새로운 자본이 경쟁을 증가시켰으며, 우산 및 초과 책임 보험을 제외합니다.
- 재정 라인에서 부드러운 시장 조건을 위한 주요 원동력으로 용량이 남아 있습니다.
- 사이버 시장은 대부분의 갱신에 대해 정체 또는 중간 단일 자릿수 요율 감소를 예상합니다.
- 우산 및 초과 책임 보험은 손실 비용 증가로 인해 혼란을 겪고 있으며, 갱신 요율이 높은 단일 자릿수를 초과합니다.
보고서는 태풍과 같은 큰 혼란이 없는 한 대부분의 라인에서 상대적으로 안정적인 갱신 조건을 예측합니다. 2024년의 주요 가격 예측은 자산, 책임, 경영 위험 및 정치적 위험 카테고리의 변화를 포함합니다.
Le dernier rapport de WTW sur les réalités du marché de l'assurance indique une stabilité des tarifs d'assurance commerciale en Amérique du Nord pour 2024. Les résultats clés comprennent :
- Le nouveau capital sur les marchés de la réassurance et de la distribution a accru la concurrence, sauf pour les assurances umbrella et la responsabilité civile supplémentaire.
- La capacité reste un moteur des conditions de marché favorable dans les lignes financières.
- Le marché de la cybersécurité prévoit une diminution des tarifs variant entre le maintien et une chute modérée à un chiffre pour la plupart des renouvellements.
- L'assurance umbrella et la responsabilité civile supplémentaire rencontrent des perturbations dues à l'augmentation des coûts des sinistres, avec des taux de renouvellement dépassant un nombre unique élevé.
Le rapport prédit des conditions de renouvellement relativement stables dans la plupart des lignes, sauf en cas de perturbations majeures comme les ouragans. Les prévisions de prix pour 2024 incluent des variations dans les catégories de biens, de responsabilité civile, de risques exécutifs et de risques politiques.
Der aktuelle Bericht von WTW über die Realitäten des Versicherungsmarktes zeigt eine Stabilität der gewerblichen Versicherungsprämien in Nordamerika für 2024. Zu den wichtigsten Ergebnissen gehören:
- Neues Kapital auf den Rückversicherungs- und Einzelhandelsmärkten hat den Wettbewerb erhöht, mit Ausnahme von Haftpflicht und überschüssigen Haftpflichtversicherungen.
- Die Kapazität bleibt eine treibende Kraft für weiche Marktbedingungen in Finanzlinien.
- Der Cybermarkt prognostiziert stabile bis mittlere einstellige Prämienrückgänge für die meisten Erneuerungen.
- Die erweiterten Haftpflichtversicherungen sehen sich aufgrund steigender Verlustkosten Störungen gegenüber, wobei Erneuerungsraten über dem hohen einstelligen Bereich liegen.
Der Bericht sagt relativ stabile Erneuerungsbedingungen in den meisten Linien voraus, es sei denn, es gibt größere Störungen wie Hurrikane. Die wichtigsten Preiserwartungen für 2024 umfassen Variationen in den Kategorien Sachversicherung, Haftpflicht, Executive-Risiken und politische Risiken.
- Increased competition for premium market share due to new capital in reinsurance and retail markets
- Soft market conditions for financial lines driven by ample capacity
- Cyber market projecting flat to mid-single digit rate decreases across most renewals
- Relatively stable renewal conditions expected across most lines of business
- Disruption in Umbrella & Excess liability with renewal rates pushing past high single-digit
- Rising loss costs in casualty due to factors like legal system abuse and litigation financing
- Potential market disruption from major hurricanes, with growing probability as Hurricane Milton approaches
Insights
The commercial insurance market is showing signs of stability and moderation across most lines, indicating a balanced environment for insurers and policyholders. Key observations:
- New capital influx in reinsurance and retail markets is driving competition, particularly in first-party business.
- Financial lines are experiencing soft market conditions due to increased capacity.
- Cyber market projections suggest flat to mid-single digit rate decreases for most renewals.
- Umbrella & Excess liability remains a concern with rising loss costs and reduced capacity.
The stability in rates, barring major catastrophic events, suggests a favorable environment for businesses seeking insurance coverage. However, the potential impact of factors like climate change and legal system abuse on specific lines warrants careful monitoring. Overall, this market condition may benefit WTW's broking and advisory services as clients navigate this complex landscape.
The report highlights several critical trends for risk managers to consider:
- Property rates are diverging based on CAT exposure, with non-CAT exposed properties potentially seeing decreases.
- Casualty lines, especially Umbrella & Excess liability, are facing upward pressure due to factors like legal system abuse and emerging risks (e.g., forever chemicals).
- Cyber rates are stabilizing, offering potential relief for organizations heavily invested in cybersecurity.
- Political risk and terrorism coverage are seeing varied increases, reflecting global geopolitical tensions.
These trends underscore the importance of tailored risk management strategies. Companies should focus on demonstrating strong risk controls, especially in high-hazard areas, to secure favorable terms. The evolving landscape also presents opportunities for WTW to provide value through its advisory services, helping clients navigate these complex market dynamics.
NEW YORK, Oct. 09, 2024 (GLOBE NEWSWIRE) -- According to the latest Insurance Marketplace Realities report from WTW (Willis Towers Watson, NASDAQ: WTW), a leading global advisory, broking and solutions company, commercial insurance rates have demonstrated balance and stability throughout the year across North America. Jon Drummond, Head of Broking, North America, WTW, commented, “The industry has not categorically rewritten its position on any one line of business, but rather has taken micro-actions reacting to emerging trends.”
WTW reports that new capital in both the reinsurance and retail marketplace has led to increased competition for premium market share, excluding umbrella and excess liability. This trend has played out across the industry, which is particularly meaningful in 1st party business where capacity was a challenge at the outset of 2024.
Capacity remains a driving force in delivering soft market conditions for financial lines. While WTW advises that it may be premature to call it a trend, there appears to be mounting focus on rate adequacy in mid-excess Directors & Officers Liability. In addition, the Cyber market projects flat to mid-single digit rate decreases across most renewals in the near term.
In casualty, Umbrella & Excess liability has seen the most amount of disruption. Loss costs continue to rise due to factors including legal system abuse, litigation financing, and the growth of concerns such as forever chemicals, to which the insurance market has responded by reducing lines of capacity available to insureds and pushing renewal rates past high single-digit.
WTW’s Marketplace Realities report concludes that while the industry is facing evolutionary change across many lines of business – e.g. climate change, nuclear verdicts, new capital entrants, etc. – the market should deliver relatively stable renewal conditions across most lines of business as the year comes to a close.
Drummond added, “It goes without saying that the current state of affairs might only be one major hurricane away from being upended, and with Milton knocking on the door, the probability of disruption is growing.”
Key Price Predictions for 2024
| Property | |
| CAT-exposed | - |
| Non-CAT exposed | - |
| Domestic casualty | |
| General liability | + |
| Umbrella (high hazard) | + |
| Excess (high hazard) | + |
| Excess (low hazard) | + |
| Workers’ compensation | - |
| Auto | + |
| International | Flat |
| Executive risks | |
| Directors’ and officers’ public company (primary) | - |
| Directors’ and officers’ private / not-for-profit (overall) | - |
| Side A / DIC | - |
| Errors and omissions (large law firms) | + |
| Employment practices liability (primary) | - |
| Fiduciary (financial institutions) | - |
| Cyber | |
| Cyber | - |
| Political risk | |
| Most risks | Flat to + |
| Terrorism and political violence | |
| Terrorism and sabotage | Flat to + + |
| Political violence | Flat to + + |
About WTW
At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance.
Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you. Learn more at wtwco.com.
Media Contacts
Douglas Menelly, Public Relations Lead, North America
Douglas.Menelly@wtwco.com | +1 (516) 972 0380
Arnelle Sullivan, Public Relations Associate, North America
Arnelle.Sullivan@wtwco.com | +1 (718) 208-0474
FAQ
What are the key findings of WTW's Insurance Marketplace Realities report for 2024?
How are property insurance rates expected to change in 2024 according to WTW?
What are the projected rate changes for Directors' and Officers' insurance in 2024?
How is the Cyber insurance market expected to perform in 2024 based on WTW's report?
