| Trend | Range | |
|---|---|---|
| Better risks |  |
Flat |
| Poor risks |  | Flat to +5% |
Key takeaway
Insurers are anticipating higher claim activity for 2022. Whether this turns into a tsunami wave remains to be seen, but past-due filings have increased significantly, and insolvencies in certain geographies are on the rise.
With war in Europe having global economic repercussions, insurers are closely watching the potential for trade disruption there and elsewhere.
- Russia and Ukraine are obvious points of concern along with neighboring countries in the region.
- Turkey is facing the devaluation of the lira.
- Brazil’s upcoming elections are creating uncertainty.
- K. insolvencies were up 33% at year-end 2021 compared to the year before.
The rate decreases we saw last fall are a thing of the past, though most buyers should see flat renewals in 2022.
- Despite the anticipated claim increases, insurer appetites and limits are back to pre-pandemic levels, and this marketplace remains better for buyers than most P&C lines.
- Sectors being closely watched are transportation, electronics, automotive suppliers and transport equipment.
Trade credit insurers are showing concern about non-bank supply chain finance.
- Insurer underwriting guidelines for non-bank supply chain finance and other monetization programs continue to be restrictive.
- A successful track record of at least three years will be necessary for many insurers to consider onboarding a non-bank client.
Disclaimer
Willis Towers Watson hopes you found the general information provided in this publication informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, Willis Towers Watson offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).