EMEA Insurance Market Report 2016
With 2016 under way, the global insurance marketplace appears to be heading in the general direction of soft pricing, reflecting insurer capacity, competition, and relatively low catastrophe losses, according to the Europe, Middle East, and Africa (EMEA) Insurance Market Report 2016.
However, industry developments, including recent earnings announcements, executive leadership changes, and re-underwriting at several companies, bear watching. Macro dynamics, such as global economic, political, regulatory, technological, and environmental developments, will also continue to affect the industry throughout the year.
Among the report’s findings:
- Cyber risk is “the hot topic” in boardrooms across Europe, Middle East, and Africa. As a result, there has been a dramatic increase in the number of inquiries about the role insurance can play in managing the threat.
- In light of terrorist attacks, the migration crisis, and other developments in the region, terrorism and political violence risks feature prominently on the risk radars of most organizations.
- Directors and officers (D&O) liability rates have remained stable or decreased in all but one country in the region: Average reductions of up to 10% were reported in 12 countries, while another recorded reductions of up to 20%.
- Motor/Automotive premium rates increased by an average of up to 10% in 11 countries and by more than 10% in two others. These rate increases are attributed to high loss ratios in the motor third-party liability business and additional regulations driving up underwriting costs.
- Captive numbers increased globally in 2015, continuing the trend of steady growth over the last 20 years, in spite of ongoing soft insurance market pricing and high levels of capacity.
Through data and analysis, the Europe, Middle East, and Africa (EMEA) Insurance Market Report 2016 provides a snapshot of current insurance market conditions and risk trends across major lines of coverage in 36 different countries across the region, as well as various specialty sectors. The report reflects the experience of Marsh insurance professionals who work daily with the global insurance marketplace and provide clients with risk management advice.