CHLOE LILLEY: So hi, everyone, and welcome to our latest Insights Podcast, where we break down what's happening in the insurance market and what it means for our clients. I'm Chloe Lilley, I work in the Global Placement team, and today I'm joined by Tom Haddrill, Head of Broking Placement for CEEMEA, who works closely with clients across Eastern Europe, the Middle East, and Africa. We're talking market trends, pricing pressures, and what clients should be watching for in 2025.
TOM HADDRILL: Thanks, Chloe. Great to be able to do this.
CHLOE LILLEY: OK. Let's start with the big picture. How would you describe overall market conditions in Eastern Europe, the Middle East, and Africa?
TOM HADDRILL: Thank you. Yeah I mean, broadly speaking, market conditions across the region are definitely softening. It's not necessarily as sharp or as acute as we've seen in some other parts of the world like the UK, North America, Australia where pricing is dropping more rapidly. But the trend is definitely downwards, which I think is really welcome news for clients after a tough few years.
CHLOE LILLEY: So let's zoom in on Middle East. What stood out to you there over the past renewal cycle?
TOM HADDRILL: Yeah, the Middle East was quite active. In the UAE, we did see some upward pressure on pricing following last year's flood losses in Dubai. But at the same time, we were able to achieve great outcomes on many what you'd call statement accounts or maybe our major renewals. These saw rate reductions. There was strong scrutiny on terms and conditions, as carriers are often likely to do after major natcat events, but we were able to achieve excellent outcomes.
I think in Dubai specifically, we're seeing increased capacity coming into the market, particularly from new players, including international insurers, MGAs, and Lloyd's syndicates. The competition is creating real opportunities. That's both from carriers who are just brand new startups and some of those who are bringing back appetite and underwriting capability to the region after it was retrenched in previous years.
In some specific countries, like Saudi Arabia, pricing continued to decrease. It's a very dynamic environment there and we were really glad to be able to be up and running fully with our new office. Our team on the ground is doing great work achieving and advocating for clients. They've been going there since the Q1 this year.
CHLOE LILLEY: And what about the African and Eastern European markets? Any key developments there?
TOM HADDRILL: Yeah. I mean, in Eastern Europe, the market remains more stable, though capacity is definitely loosening in a few pockets. Underwriters remain selective, but competition is building and we're starting to see much more favorable pricing emerge, particularly in lines like cyber and financial institutions. Africa is, as always, very diverse. In more mature markets, like South Africa, pricing is softening steadily. And in other countries, I would say political risk remains a factor. But overall, carrier appetite is increasing, and that's creating a lot of room for larger or well structured programs to benefit from better terms.
CHLOE LILLEY: So you specifically mentioned that you're starting to see more favorable pricing emerge in cyber and financial lines. How are those performing across the region?
TOM HADDRILL: Yeah. We've seen cyber and financial lines reduce throughout the region. I think that's a real bright spot. I'm glad you've picked up on it. And we've also seen new appetite from first time buyers. I think that's what's driving a lot of it. So we're seeing a market that's still continuing to mature. That's particularly relevant in Eastern Europe and in the Middle East. We've been able to tap into capacity from new market entrants and really secure some great placements in the last six months.
CHLOE LILLEY: Have recent claims events, for examples, the UAE floods, had much of an impact on the overall outlook?
TOM HADDRILL: Yes and no. There have been some really notable losses, including the floods in the UAE that you mentioned and flooding in Eastern Europe in Q3 last year. But interestingly, carriers are still posting very strong results. Even some of those which are very heavily concentrated on those markets. So we're actually seeing increased activity from insurers across hubs like Vienna and Dubai. That tells us the outlook for the rest of 2025 is positive. I think as insurers look to fulfill budgets and grow, there's a healthy level of competition and growing appetite. So that bodes well for clients heading into their next renewals.
CHLOE LILLEY: Right. And the final question, what's your top piece of advice as we move through the year?
TOM HADDRILL: It's still going to be start early. I think even in a softening market, timing is everything. Early engagement gives us the leverage to negotiate the best terms. And also, let's not assume all markets move the same way. I think tailoring your approach by geography and the line of business really pays off. I think if I can have some more top pieces of advice, I think that's really focus on specialty and analytics in 2025.
I think in a changing or dynamic market, we want to ensure clients are discussing everything that they need with us and using analytics to tailor our program correctly to get the right structure. And then using market leverage to explore introducing new or amended specialty covers, I think, is really important. So lets finally lean into the opportunities. I think there's real momentum from a lot of the new entrants in our space and changing appetite, so we think we're well placed to help clients make the most of it.
CHLOE LILLEY: Thanks, Tom. That was a fantastic roundup. And thanks to everyone for listening. If you'd like to know more or want to speak to us about your program, please don't hesitate to reach out.
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