Emerging new capacity and improvements in insurer appetite are generating renewed, albeit tempered, competition and assisting to ease upward pressure on premiums is some sectors. Whilst insurers are moving cautiously to protect the premium gains secured over recent renewal cycles, insurers are now positioned to provide greater flexibility in their underwriting responses.
We anticipate that positive developments in the risk landscape, which include amendments to Australia’s continuous disclosure laws, will be closely monitored by insurers, while their attention turns to emerging risks associated with shareholder activism, increased community expectations, and developing legislative responsibilities in relation to environmental, social, governance (ESG) risks.
As we look forward towards 2022, we anticipate a more stable market environment, with greater capacity opportunities. Whilst premiums will continue to face upward pressure, increased competition, especially on Insuring Clauses A and B, will temper insurers’ expectations.
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