In this H1 2023 Insurance Company Market Update, we are pleased to provide our thoughts on the current state of the insurance market for GB and US Insurance Companies. This update also gives an insight into what to expect for the rest of 2023.
While insurance company professional liability (ICPL) remains a very challenging risk for insurers within our marketplace, rate and retention adjustments over the last several years have made the exposure more appealing and allowed us to drive meaningful competition. It will come as a relief for insurance companies to know that premiums are stabilizing, and in some cases reducing.
The combination of aggressive insurer growth targets and an injection of new capital has accelerated a return to a healthy market dynamic. It should be noted that while this is generally the case for ICPL, certain risks such as sales and marketing coverage for individual life products and exposure to the troubled banks and/or have been materially impacted by the market volatility following these events.
Environmental, social, and governance (ESG) and climate change remain high on the agenda of firms and regulators worldwide, with increasing engagement at board and senior executive level on a range of issues. Other current areas of focus are the regulatory framework for financial services, including the Consumer Duty and the sustainability disclosure requirements, and the operational resilience of firms, including the challenges brought about by the recent turmoil in the banking sector and/or geopolitical events in Eastern Europe. We remain focused on working to negotiate better terms from insurer on behalf of our clients, and manage clients’ expectations accordingly by building honest and constructive relationships to support better outcomes. Against this backdrop, firms proactively engaging with their brokers will be more likely to succeed in obtaining the most favourable insurance terms available in the current market.
Should you have any questions or wish to discuss any of these issues in greater detail, please do contact me or a member of your WTW team.
| Title | File Type | File Size |
|---|---|---|
| The State of the Market – June 2023 Insurance Company Market Update | 1.2 MB |
