Rates

WTW: lead umbrella and excess liability rates less volatile

Lead umbrella and excess liability – areas of the US commercial insurance market that have been among the hardest over the last two years – are beginning to show signs of a deceleration in rate increases and reduced volatility at renewal, according to Willis Towers Watson (WTW).

B&W: Commercial transportation pricing continues to drive upwards

Pricing in the commercial transportation market will maintain its upwards trajectory for at least the next couple of years as insurers continue to struggle to get a hold on rising claims costs from nuclear verdicts and capacity leaves the sector with underwriters scrutinising business ever more closely.

RLI’s Q1 pricing ahead of loss cost trends even as rate rises dampen

RLI continues to generate rate increases at or above long-term loss cost trends across much of its portfolio even as the pace of price rises seen in recent years begins to slow.

WTW: rate increases begin to decelerate in NA commercial P&C

Rates are approaching technical adequacy in some lines and sectors of the North American commercial P&C market, with signs of decelerating price increases emerging, according to Willis Towers Watson (WTW).

Travelers CEO: Pricing to outpace loss trends “for some time”

The continued headwinds impacting industry returns mean that pricing is set to outpace loss trends “for some time”, even as overall pricing nears record levels, according to Travelers CEO Alan Schnitzer.

JMP’s Carletti: Investors to focus on pricing cycle during Q1

JMP analyst Matthew Carletti said the first-quarter results season that gets underway for carriers next week will “likely paint a complex picture” with severe catastrophe losses from US winter storm activity and mark-to-market losses on the back of rising interest rates both negatively impacting book value and earnings per share growth.

Marsh: downstream energy heads to tipping point without 2021 losses

The downstream energy insurance market is nearing a potential tipping point as it moves through its most active quarter for renewals, as compounding years of rate increases combine with better loss experience in 2020 and lower-than-expected reinsurance costs to improve carrier margins.

WTW: Upstream energy hardening mild overall but offshore CAR up 20-75%

The upstream energy market is characterised by record capacity, benign losses and mild rate hardening but the offshore construction portfolio continues to operate at a loss, Willis Towers Watson (WTW) states in its new Energy Market Review.

Downstream energy a two-tier market as rates continue to rise, says WTW

A distinct two-tier insurance market remains in the downstream energy sector, with rates continuing to rise even with the segment’s premium income exceeding losses in 2020 and theoretical capacity once again increasing, according to Willis Towers Watson (WTW).

Eeyore or Goldilocks: what’s happening with (re)insurance rates?

As we all know, the world is divided between those who take a rosy, glass-half-full view of events and those who squint at the glass and gloomily come to a more Eeyorish interpretation.

Berenberg expects 1.4 renewal outcomes have been “largely in line” with expectations

European reinsurance combined ratios will improve by at least 1 percent during 2021 as market hardening continues, according to Berenberg analysts, with terms and conditions also continuing to tighten.

MarketScout: US commercial rate increases level off at 7% in Q1

MarketScout has reported that the average US property casualty commercial rate increase in the first quarter was down slightly over the previous quarter at 7 percent, with umbrella, professional liability and D&O rising the most with double digit increases.

Commercial insurance rate rises fluctuate in February: Ivans

US commercial insurance rate increases accelerated in three of the six business lines tracked by Ivans during February, with commercial property out in front with pricing that jumped by 6.13 percent on average.

US commercial price increases continue to accelerate: WTW’s CLIPS

US commercial insurance pricing continued to accelerate upwards in Q4 2020 with aggregate rate rises of 11 percent through the period with the largest increases in excess/umbrella and directors and officers (D&O), according to Willis Towers Watson (WTW).

E&O/cyber pricing to rise 20-50% throughout 2021: Aon

Loss severity and frequency pushed many E&O/cyber insurers past a tipping point in 2020 with the majority set to seek rate increases greater than 30 percent through the second quarter of this year, Aon has said in a new report.

S&P: Reinsurance sector didn’t earn its cost of capital in 2020

S&P Global Ratings says it believes the global reinsurance sector fell to an overall underwriting loss for 2020, while pricing came up short for reinsurers at 1 January as a result of excess capacity and new entrants, leading the ratings agency to remain negative on the sector.

GL and umbrella rates continue to accelerate in January: Ivans

Average rate rises continued to accelerate in the general liability and umbrella markets in January while workers’ compensation rates appear to be bottoming out, as pricing reductions maintained their recent softening trend, according to new data from Ivans.

New Bermuda and London capital could have “dampening” price impact: AM Best

Bermudian and London market (re)insurers have been able to raise equity with relative ease, which could have a dampening effect on pricing improvements, AM Best has commented.

Casualty leads the way as Liberty GRS posts 15% average renewal rate rises in 2020

CEOs confident US rates will continue to outpace loss costs

An analysis of US commercial insurance feedback provided by management in earnings releases and on investor calls reveals rate increases continue to accelerate for most, with pricing drivers such as social inflation and the low interest environment expected to persist throughout 2021.