LCPA 22/088
2021 was a dynamic year for the casualty insurance market, both globally and locally. Pricing stabilised at +15% in the fourth quarter, down from +18% in the second quarter (the largest year-over-year increase since 2012. Whilst there are no specific ‘new market’ entrants to point toward, pleasingly there are signs of increased appetite in early 2022 within the domestic market.
Underwriting concerns remain for exposure driven insureds; specifically those that are either catastrophe/ frequency claims exposed, We continue to see excess layer pricing scrutiny – especially from domestic insurers.
The 1 January reinsurance treaty renewal outcomes were largely in line with expectations, with a continued emphasis on key coverage trends such as COVID-19, cyber, climate change endorsements and SMC/Abuse coverage.
The London casualty market remains an invaluable trading partner for many domestic clients. Lloyds continues to provide a significant amount of capacity across all avenues of the liability portfolio, including solutions on high hazard/significantly distressed business.
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LCPA 22/088