The rapidly escalating pricing of the last few years has now settled into a more consistent and predictable pattern as capacity withdrawals, and syndicate closures, diminish. Despite this, most insureds are looking at low, double digit increases in the near-term.
Underwriters are disengaging with accounts that have a poor loss record, limited spread of risk, low premium level or deductibles that are perceived to be inadequate. On larger or better performing accounts, leading underwriters are balancing the interests of the following market, with the risk of losing a favored client. Often, following markets are only prepared to support a competitive lead-line with higher alternative pricing, and there can be high uncertainty about the final price until the end of the placement process. In this situation, accounts that have regularly changed insurers are unlikely to receive any preferential treatment.
Overall, focus continues on deductibles, with terms and conditions continuing to tighten, and the inclusion of increasingly standard clauses such as: