Global Market Insights, Q3 2022

Key trends include:

• Insurers remained focused on profitable growth. Persistently high inflation combined with ongoing geopolitical instability, supply chain challenges, and climate change concerns created continued uncertainty in the market; however, increased competition paired with strong combined ratios served to dampen the impacts of these challenges. Insurers remained focused on profitable growth, and strong risk management played heavily in underwriting decisions.
• A two-tiered market became more pronounced. A two-tiered market became more pronounced across a significant portion of the market, with products and in-appetite risks targeted for insurer growth experiencing flat or decreased pricing and abundant capacity while challenging, poor-performing or out-of-appetite risks experienced material rate increases and tight capacity, although these conditions moderated somewhat from previous periods.
• Insurer conservatism strengthened. In the aftermath of Hurricane Ian, which, by early industry estimates, may amount to a $50-70B insurance event, insurer conservatism strengthened. As the full market impacts of Hurricane Ian materialize, a shift in pricing and capacity is widely expected to ripple across the primary and reinsurance market in Q4 and beyond.
• The spotlight solution featured in this edition is IP solutions.

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