CORRECTION -- 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. Jon Drummond, Head of Broking, North America at WTW, notes that the industry has taken micro-actions in response to emerging trends. New capital in reinsurance and retail markets has increased competition for premium market share, except in umbrella and excess liability.
The report highlights soft market conditions for financial lines due to increased capacity. The Cyber market projects flat to mid-single digit rate decreases for most renewals. Umbrella & Excess liability has seen significant disruption, with rising loss costs pushing renewal rates past high single digits. Despite facing evolutionary changes, the market is expected to deliver relatively stable renewal conditions across most lines as the year ends.
Il più recente report di WTW sulle Realtà del Mercato Assicurativo indica stabilità nei tassi delle assicurazioni commerciali in Nord America. Jon Drummond, Responsabile delle Attività di Intermediazione per il Nord America presso WTW, osserva che l'industria ha messo in atto micro-azioni in risposta a tendenze emergenti. Nuovi capitali nei mercati di riassicurazione e al dettaglio hanno aumentato la concorrenza per la quota di mercato dei premi, eccetto nel caso delle polizze di responsabilità civile e delle eccedenze.
Il report evidenzia condizioni di mercato favorevoli per le linee finanziarie a causa di una maggiore capacità. Il mercato Cyber prevede diminuzioni delle tariffe piatte o a singolo cifra per la maggior parte dei rinnovi. Le polizze di Responsabilità Civile e delle Eccedenze hanno subito notevoli perturbazioni, con l'aumento dei costi delle perdite che ha spinto le tariffe di rinnovo oltre le alte cifre singole. Nonostante le sfide evolutive, si prevede che il mercato offra condizioni di rinnovo relativamente stabili per la maggior parte delle linee alla fine dell'anno.
El último informe de WTW sobre Realidades del Mercado de Seguros indica estabilidad en las tarifas de seguros comerciales en América del Norte. Jon Drummond, Jefe de Corretaje de América del Norte en WTW, señala que la industria ha tomado microacciones en respuesta a las tendencias emergentes. El nuevo capital en los mercados de reaseguro y al por menor ha aumentado la competencia por la participación en el mercado de primas, excepto en el caso de las pólizas de responsabilidad civil y de exceso.
El informe destaca condiciones de mercado suaves para las líneas financieras debido a la mayor capacidad. El mercado cibernético proyecta disminuciones de tarifas planas a cifras de un solo dígito medio para la mayoría de las renovaciones. Las pólizas de Responsabilidad Civil y de Exceso han experimentado una interrupción significativa, con el aumento de los costos de las pérdidas que empuja las tarifas de renovación más allá de los altos dígitos únicos. A pesar de enfrentar cambios evolutivos, se espera que el mercado ofrezca condiciones de renovación relativamente estables en la mayoría de las líneas al final del año.
WTW의 최신 보험 시장 현실 보고서는 북미 전역에서 상업 보험 요율의 안정성을 나타냅니다. WTW의 북미 중개 책임자인 Jon Drummond는 산업이 새로운 트렌드에 대응한 미세한 조치를 취했다고 언급합니다. 재보험 및 소매 시장의 새로운 자본은 프리미엄 시장 점유율을 위한 경쟁을 증가시켰습니다, 우산 및 초과 책임 제외하고요.
보고서는 재정적 분야의 완화된 시장 조건을 강조합니다. 사이버 시장은 대부분의 갱신에 대해 평탄한 또는 중간 한 자리 수의 요율 감소를 예측하고 있습니다. 우산 및 초과 책임은 손실 비용 상승으로 갱신 요율이 높은 한 자리 수를 넘어서고 있습니다. 진화하는 변화를 겪고 있음에도 불구하고, 연말에 대부분의 분야에서 상대적으로 안정적인 갱신 조건을 제공할 것으로 예상됩니다.
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. Jon Drummond, Responsable du Courtage en Amérique du Nord chez WTW, note que l'industrie a pris des micro-actions en réponse à des tendances émergentes. De nouveaux capitaux dans les marchés de réassurance et de détail ont augmenté la concurrence pour la part de marché des primes, sauf pour les polices de responsabilité civile et des excédents.
Le rapport met en lumière des conditions de marché favorables pour les lignes financières en raison d'une capacité accrue. Le marché cybernétique projette des réductions de tarifs plates à un chiffre moyen pour la plupart des renouvellements. Les polices de responsabilité civile et d'excédent ont connu des perturbations importantes, avec une augmentation des coûts des sinistres poussant les taux de renouvellement au-delà des hauts chiffres uniques. Malgré les changements évolutifs auxquels il fait face, le marché devrait offrir des conditions de renouvellement relativement stables pour la plupart des lignes à la fin de l'année.
Der neueste Bericht von WTW zu den Realitäten des Versicherungsmarktes zeigt Stabilität der gewerblichen Versicherungsprämien in Nordamerika. Jon Drummond, Leiter der Makleraktivitäten in Nordamerika bei WTW, stellt fest, dass die Branche Mikroaktionen als Reaktion auf aufkommende Trends ergriffen hat. Neues Kapital in den Rückversicherungs- und Einzelhandelsmärkten hat den Wettbewerb um den Marktanteil der Prämien erhöht, mit Ausnahme von Haftpflicht- und Überschussversicherungen.
Der Bericht hebt weiche Marktbedingungen für Finanzlinien aufgrund einer erhöhten Kapazität hervor. Der Cybermarkt geht von flachen bis mittleren einstelligen Tariferhöhungen für die meisten Erneuerungen aus. Haftpflicht- und Überschussversicherungen haben erhebliche Störungen erfunden, da steigende Verlustkosten die Erneuerungsraten auf hohe einstelligem Niveau drängen. Trotz der evolutionären Herausforderungen wird erwartet, dass der Markt relativ stabile Erneuerungsbedingungen in den meisten Linien zum Jahresende bietet.
- Stability in commercial insurance rates across North America
- Increased competition for premium market share due to new capital
- Soft market conditions for financial lines
- Projected flat to mid-single digit rate decreases in Cyber market
- Disruption in Umbrella & Excess liability with rising loss costs
- Reduced lines of capacity available to insureds in Umbrella & Excess liability
- Renewal rates pushing past high single digits in Umbrella & Excess liability
- Potential market disruption due to hurricane threats
Insights
1. New capital influx is driving competition, particularly in 1st party business where capacity was previously constrained.
2. Financial lines are experiencing soft market conditions due to ample capacity.
3. Cyber insurance is projecting flat to mid-single digit rate decreases, indicating a favorable market for buyers.
4. Umbrella & Excess liability remains an outlier, with rates pushing past high single digits due to rising loss costs.
5. The market faces evolutionary changes from factors like climate change and nuclear verdicts, but overall stability is expected.
This balanced market suggests potential cost savings for businesses in most insurance lines, except for Umbrella & Excess liability. However, the caveat about potential disruption from major events like hurricanes adds an element of uncertainty to this outlook.1. Legal system abuse and litigation financing are driving up loss costs in casualty lines, particularly affecting Umbrella & Excess liability.
2. Emerging concerns like "forever chemicals" are impacting insurance markets, potentially leading to new exclusions or coverage limitations.
3. Climate change is noted as an evolutionary factor, which could increasingly affect property insurance and business continuity planning.
4. The mention of Hurricane Milton underscores the ongoing threat of natural disasters to market stability.
5. Directors & Officers Liability may see increased focus on rate adequacy in mid-excess layers, suggesting potential changes in this important coverage for corporate leadership.
These factors indicate a need for businesses to reassess their risk management strategies and insurance portfolios to ensure adequate protection in a changing risk landscape.
NEW YORK, Oct. 09, 2024 (GLOBE NEWSWIRE) -- In a release issued under the same headline earlier today by Willis Towers Watson US LLC (Nasdaq: WTW), please note that the inaccurate 'Key Price Predictions for 2024' table has been removed. The corrected release is as follows:
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.”
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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 has new capital affected the insurance market according to WTW's report?
What trends are observed in the Cyber insurance market based on WTW's analysis?
How is the Umbrella & Excess liability market performing according to WTW's report?
