NEW YORK, Oct. 09, 2024 (GLOBE NEWSWIRE) — According to the latest Insurance Marketplace Realities report from WTW (Willis Towers Watson, NASDAQ: WTW), a leading global advisory, broking and solutions company, commercial insurance rates have demonstrated balance and stability throughout the year across North America. Jon Drummond, Head of Broking, North America, WTW, commented, “The industry has not categorically rewritten its position on any one line of business, but rather has taken micro-actions reacting to emerging trends.”
WTW reports that new capital in both the reinsurance and retail marketplace has led to increased competition for premium market share, excluding umbrella and excess liability. This trend has played out across the industry, which is particularly meaningful in 1st party business where capacity was a challenge at the outset of 2024.
Capacity remains a driving force in delivering soft market conditions for financial lines. While WTW advises that it may be premature to call it a trend, there appears to be mounting focus on rate adequacy in mid-excess Directors & Officers Liability. In addition, the Cyber market projects flat to mid-single digit rate decreases across most renewals in the near term.
In casualty, Umbrella & Excess liability has seen the most amount of disruption. Loss costs continue to rise due to factors including legal system abuse, litigation financing, and the growth of concerns such as forever chemicals, to which the insurance market has responded by reducing lines of capacity available to insureds and pushing renewal rates past high single-digit.
WTW’s Marketplace Realities report concludes that while the industry is facing evolutionary change across many lines of business – e.g. climate change, nuclear verdicts, new capital entrants, etc. – the market should deliver relatively stable renewal conditions across most lines of business as the year comes to a close.
Drummond added, “It goes without saying that the current state of affairs might only be one major hurricane away from being upended, and with Milton knocking on the door, the probability of disruption is growing.”
Key Price Predictions for 2024
| Property | |
| CAT-exposed | -5% to +10% |
| Non-CAT exposed | -5% to +5% |
| Domestic casualty | |
| General liability | +2% to +8% |
| Umbrella (high hazard) | +8% to +15% |
| Excess (high hazard) | +10% + |
| Excess (low hazard) | +2% to +7% |
| Workers’ compensation | -5% to +2% |
| Auto | +4% to +10% |
| International | Flat |
| Executive risks | |
| Directors’ and officers’ public company (primary) | -10% to Flat |
| Directors’ and officers’ private / not-for-profit (overall) | -10% to Flat |
| Side A / DIC | -10% to Flat |
| Errors and omissions (large law firms) | +2% to +8% |
| Employment practices liability (primary) | -5% to +5% |
| Fiduciary (financial institutions) | -5% to +5% |
| Cyber | |
| Cyber | -5% to Flat |
| Political risk | |
| Most risks | Flat to +20% |
| Terrorism and political violence | |
| Terrorism and sabotage | Flat to +10% Non-volatile territories +10% to +25% Volatile territories |
| Political violence | Flat to +15% Non-volatile territories +15% to +30% Volatile territories |
About WTW
At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance.
Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success–and provide perspective that moves you. Learn more at wtwco.com.
Media Contacts
Douglas Menelly, Public Relations Lead, North America
Douglas.Menelly@wtwco.com | +1 (516) 972 0380
Arnelle Sullivan, Public Relations Associate, North America
Arnelle.Sullivan@wtwco.com | +1 (718) 208-0474
COMTEX_458634886/2471/2024-10-09T10:27:07