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Global Marketplace Insights Q1 2024

Our Global Marketplace Insights brings together a series of videos from across WTW’s global lines of business, providing you with the latest perspectives and expert views on market trends and opportunities.

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2023 saw record profits for insurers and reinsurers, driven by a combination of strategic actions and the absence of major catastrophes, accompanied by favorable returns on investment portfolios. The insurance market in Q1 2024 presents a more favorable outlook for organizations. While certain lines and geographies face specific challenges, overall market conditions are stabilizing or easing, with most insurers in growth mode and actively seeking insurance dollars which increases competition for business.

Staying close to market guidance and insight will help you make the most of current market conditions. To enable you to adapt your risk and insurance strategies effectively, we’ll continue to provide quarterly updates into specific lines of business and geographies. In the meantime, here are some headline themes from Q1 2024 to be aware of:

  1. 01

    Challenges in geopolitical risks and terrorism

    Geopolitical risks and terrorism continue to pose challenges in the insurance market. The political violence and terrorism sector is experiencing capacity reduction and pricing increases. Insurers are actively de-risking in certain areas of the world, which can create gaps in coverage. If you have exposures in these areas, you will need to be proactive and engage with the market early to secure appropriate coverage.

  2. 02

    Climate change is impacting the number and frequency of catastrophes

    Climate change is leading to more frequent, smaller catastrophe claims, which are particularly impacting primary insurers in the current market. Despite the lack of a singular major event, total catastrophe losses for 2023 still amounted to about $100 billion, placing it in the top ten most costly years for insurers, and 2024 has started out with above average catastrophe loss.

  3. 03

    Changing trends in D&O and cyber insurance

    Pricing in the directors' and officers’ (D&O) insurance market has been reducing materially over the past 18 to 24 months. Rates have also started to fall in the cyber insurance market. A number of insurers have tightened their stance on war exclusions in policies, leading to some movement of business to insurers willing and able to offer capacity.

    While the cyber insurance market initially experienced rapid growth and uncertainty, it is now stabilizing. Looking ahead, however, increased ransomware claims payment activity could cause some volatility to return.

  4. 04

    Caution in the U.S. casualty market

    Claims inflation and the rise of nuclear verdicts are significant concerns in the U.S. casualty market segment. Insurers and reinsurers are reacting to increased payouts by implementing more disciplined pricing strategies. As a result, pricing in the U.S. casualty market may become more sensitive to social inflation, which has recently been running at higher levels than the common measures of economic inflation. You should stay alert to these market dynamics and adjust your strategies accordingly.

  1. 05

    Next steps for Q2 2024

    The insurance market is continuing 2024 in a more relaxed state, driven by a more stable macroeconomic environment with reduced inflation and with insurers no longer focusing on remediation efforts.

    While most insurers are profitable and have growth ambitions, the market is relatively delicately balanced and conditions could yet shift if there are major natural catastrophes this summer or if there are significant court awards that test the adequacy of insurer loss reserves.

    It remains vital to understand your risk and insurance position in the context of current conditions. In particular, you may need to review insured values to reflect inflationary trends. You should also call on analytical insight to strategically market your risk program early. This is one way to achieve optimal results aligned with your risk management and broader organizational goals.

For more actionable insights on current market conditions for individual lines of business and geographies, see our quarterly video series below.


Please note the observations in the Global Marketplace Insights Spotlight video series are based on our experience with WTW clients and trends across the global markets, but they are not a whole market study.

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