Property hard market expected to continue: AmwinsPosted On: Feb. 22, 2023 12:36 PM CST
Property markets will remain hard with no softening in the foreseeable future, while in primary casualty lines, renewals remain largely flat except for challenged classes such as heavy auto-exposed and trucking, according to a report Wednesday from Amwins Group Inc.
Due to the challenges in the property market, however, reinsurers are being “extremely cautious” with all their capacity, which may negatively impact casualty markets further into 2023, Amwins said.
The excess casualty sector continues to see “moderate” rate increases anywhere from flat to 15%, depending on account size, losses and risk exposure, but without the tumult of two years ago with insurers “hinting” at expanding limit offerings, Amwins said.
Property markets continue to be vexed by natural catastrophes, with Amwins noting the combined effects of a major hurricane making U.S. landfall in five out of the last six years, wildfires engulfing thousands of acres, unprecedented winter storms and Midwest flooding. All “have played a major role in hardening the insurance marketplace.”
Insurers are thus expected to offer less capacity and higher deductibles “in an effort to manage their portfolio aggregates as well as concentrate on profitability,” Amwins said.
Professional lines have been relatively stable with rate increases slowing overall, the report said.
Reinsurance markets also saw challenging conditions, Amwins said. Jan. 1 renewals for “were as difficult as predicted” with capacity tightening across the board together with increases in rate, retention and net retentions throughout program structures, as well as more restrictive terms and conditions. “Most program structures now look completely different than they have in previous years,” Amwins said.