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Chubb exits London wholesale international liability market

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Chubb has withdrawn from writing wholesale international liability business in London, The Insurance Insider understands.  

Sources said three underwriters have been put under consultation in the team, which is led by Lee Clarke as head of international casualty for Chubb in London.  

It is understood that Chubb is offering renewals on a short-term basis, but no new wholesale business is being written out of London. Chubb has both a Lloyd’s and company-market platform.  

The London international liability market has entered a period of correction after years of softening which caused a number of London market carriers to either exit the class or significantly scale back their exposure.

These exits were in part an upshot of the Lloyd’s performance-management drive, which forced syndicates to scrutinise the profitability of their classes more closely.  

Pockets of hardening have emerged for distressed areas, such as mining, oil and gas pipelines, Canadian roofers' and Australian bushfire risk, where double-digit rate increases are achievable.  

These areas sit against a general background of single-digit rate hardening driven by capacity withdrawal.

Profitability in liability lines has been particularly challenged as the consequences of years of rate softening have coincided with an increasingly litigious environment.

Claims frequency and severity is increasing at a time when there are market concerns around reserve adequacy.

Chubb declined to comment.

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