State of the Insurance Market

2024 Initial Outlook:
International Insurance

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Market Updates

For international property, the hard market continues due to ongoing catastrophe (CAT) activity and a challenging reinsurance market. Loss-free, non-CAT property accounts can expect rate increases in the 10% to 15% range. Accounts with CAT exposure and/or poor loss history will continue to see substantial rate increases of 25% or more, as well as reductions in CAT limits and increased deductibles. The international casualty market remains relatively stable, except for accounts with poor loss experience. Rate increases are modest for most renewals. Some low-hazard, loss-free accounts are seeing rate reductions.

The London cargo and stock throughput market remains stable as substantial new capacity has entered the market over the past 18 months. Existing capacity is also targeting growth in this class. As a result, most accounts can expect flat rate renewals. Well-performing accounts are seeing modest rate reductions for the first time in several years. The stability in this market (versus the challenges in the property market) creates opportunities for better outcomes when utilizing a stock throughput as a part of an overall property placement strategy.

Recommendations

  • Start the renewal process early, sending underwriting submissions out at least 90 days in advance of the renewal date. Additionally, businesses should identify clear objectives for each program’s renewal so marketing efforts can be focused and efficient. This includes reevaluating program limits and retentions to best align with market conditions.
  • Focus on the quality of underwriting submissions and exposure data. It is also recommended that businesses hold meetings with underwriters to personalize the standard marketing process.
  • Complete outstanding risk control recommendations that are reasonable and achievable, highlight internal risk management programs that distinguish clients as best-in-class, and provide updates and estimated timelines for the completion of unfinished risk control recommendations.
  • Ensure property values have been updated to account for inflation and provide updated business interruption worksheets.

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The contents of this report are for general informational purposes only and Risk Strategies Company makes no representation or warranty of any kind, express or implied, regarding the accuracy or completeness of any information contained herein. Any recommendations contained herein are intended to provide insight based on currently available information for consideration and should be vetted against applicable legal and business needs before application to a specific client.