CORRECTION -- Commercial insurance market projects stability as rates moderate across most lines of business
Rhea-AI Summary
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.
Positive
- 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
Negative
- 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
News Market Reaction
On the day this news was published, WTW gained 1.74%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
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.”
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 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?
