Rates

The Corporation used its latest market message to call out what it saw as an “underwhelming” approach from specialty insurers to changing conditions and “moronic” D&O underwriting.

The executive also recommitted Aon to its mission around creating net new markets – including growing IP – in the wake of the Vesttoo issues.

The ratings agency also affirmed Swiss Re’s ‘AA-’ rating, with the carrier expected to maintain an ‘AA-’ rating through 2024.

The broker said that rates were largely flat thanks to insurer appetite and competition.

Loss-free accounts were generally up 20%-50% at renewal, the reinsurance broker said.

A “little flurry” of new capacity helped the mid-year renewals as reinsurers pushed to deploy at the last chance for 2023.

Reinsurers began relaxing limits on US property exclusions, but the lack of new start-ups points towards stability amid a more orderly market, the broker forecast.

Despite reinsurers’ concerns over social inflation and loss trends, capacity remains abundant in both quota share and XoL deals, sources say.

The broker said increased reinsurance costs had not been passed onto customers.

The carrier is increasing underlying rates to counter increased reinsurance costs and inflation.

The broker said clients could save money, increase limits and buy extra coverage.

A report by the ratings agency shows cyber insurance pricing has risen by 11% in Q1.

The broker’s UK CEO said the current rating environment is ‘eminently supportable’ for London carriers.

The executive said IGI is seeing similar trends in treaty rate renewals during the second quarter of the year.

The pace of rate hikes will ease back from the 1 January reset as buyers seek to lock up capacity early after last year’s dislocated renewal.

Most lines continued to record price increases, with global rates being propelled largely by rising rates in property insurance.

The broker said pricing reductions might decelerate throughout the year if carriers perceive increased risk.

Primary insurance rate increases were 10% for property in Q1 compared to 7% in Q4.

Mark Cloutier set out Aspen’s plans for top-line 2023 growth in the range of 10%, and a continued strategy of pursuing rate rather than exposure growth in property cat.

Sources said they were seeing more verticalisation of placements in the energy market, particularly in the downstream segment.

WTW said driver shortages continue to force contractors to use younger, often less experienced drivers, potentially putting upward pressure on losses.

The outlook is based on a strong pricing environment and higher interest rates, but the ratings agency warns of changing climate trends, and social and economic inflation.

Intermediaries have highlighted the ‘evolution’ in reinsurance buying as hard market conditions are expected to continue.

Hamilton Re said early signs point to 25%-30% rate rises on Japanese wind.