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US Insurance Markets 2015: Midyear Update
Through the first half of 2015, market conditions across most commercial insurance lines remain favorable to buyers, according to a panel of risk experts who spoke during the July 22, 2015, installment of our The New Reality of Risk webcast series.
The webcast panel, which included experts from Marsh’s Property, Casualty, and FINPRO practices and our Market Information Group, discussed the state of the US property/casualty industry and market conditions for property, casualty, directors and officers liability (D&O), and cyber insurance.
Panelists also recommended strategies that you can use to better manage risk and achieve better outcomes at renewal.
Among the key takeaways from the webcast:
- Recent mergers and acquisitions among insurers will likely not have a substantial effect on overall market capacity, but could lead to capacity being withdrawn from certain areas and redeployed. Market consolidation should continue as insurers seek to scale up and expand globally.
- Non-traditional capacity and limited catastrophe losses have helped to keep the property market competitive. Time-element coverage, including business interruption and contingent business interruption, remain challenges for buyers.
- While casualty insurers remain focused on favorable accounts and classes of businesses, they are also trying to hold onto less profitable accounts to maintain premium volume. Market conditions are generally positive across casualty lines, with the exception of auto liability.
- Commercial D&O rates continue to decline, but rates are firming for private and nonprofit organizations. Five years after its passage, insurers continue to monitor how the Securities and Exchange Commission enforces key provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
- Cyber insurers are closely scrutinizing retail and health care risks following high-profile losses in those industries, but overall market conditions generally remain positive. Insurers are developing broader coverage and blending value-added services with pure risk transfer solutions.