Wholesale and specialty rates expected to remain firm into 2023Posted On: Sep. 13, 2022 7:20 AM CST
SAN DIEGO — Firm rates and capacity constraints are likely to continue in the wholesale and specialty insurance market for the remainder of this year and into 2023, even as some areas moderate, according to sources at the Wholesale & Specialty Insurance Association’s Annual Marketplace.
“The market is still tight but more stable than it has been in recent years,” said Bill McElroy, portfolio director for casualty with Aspen Insurance Holdings Ltd. In New York. “Capacity is still tight in certain areas, and we expect that to be the case for the balance of the year and into 2023. We’re not expecting any major shifts.”
Wholesale markets continue to benefit from capacity issues in the primary market.
“We’re very bullish” that market conditions will continue in the short term absent any major capital shifts in the primary market, said John Anthony, senior vice president for excess and surplus wholesale, contract property and casualty, excess and umbrella in Scottsdale, Arizona, for Nationwide Insurance.
Some sectors may see rate moderation.
“I think we’ll continue to see rate moderation on desirable classes of business, including commercial construction and manufacturing,” said Bill Wilkinson, president of national casualty brokerage in Alpharetta, Georgia, for Risk Placement Services Inc.