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Survey Report

Insurance Marketplace Realities 2023 Spring Update – International casualty

April 28, 2023

The international casualty marketplace remains a steady environment, with ample competition available for multinational insureds to find adequate capacity for risk transfer.
Rate predictions: International casualty
Trend Range
International casualty Neutral (flat yellow line) Flat

The marketplace remains stable overall despite account-specific experiences, rate modification on related lines of business, and some outside pressure, including financial, social and wage inflation. Capacity remains broadly available from an array of carriers who are financially strong and deliver from a wealth of resources.

  • With a carrier working to retain incumbent business, insureds will not necessarily need to market their programs to benefit from enhancements to terms.
  • International casualty carriers have established underwriting teams across the U.S. and Europe who can provide competitive terms to U.S.-based multinationals, offering buyers some alternative approaches to underwriting as well as increased competition.
  • Claim statistics offer evidence of less frequency or severity as compared to what can be seen in the U.S. for domestic casualty lines, which supports international casualty carriers’ profitability.

Global lines of business which deliver local policies require significant administration, and that forms a significant portion of total cost. While locally issued policies deliver regulatory compliance, admitted claim handling and compliance with any in-country contracts, the cost of delivering and servicing policies across various geographies can be significant.

  • Decisions about where to ask a carrier to issue admitted coverage should consider a broad array of factors, including the size of their local subsidiary and the likelihood of contract requirements, in addition to how they’d like to see claims handled.
  • The administration portion of multinational program cost will remain fairly constant, resulting in a certain amount of cost inelasticity, even as exposures fluctuate year on year.
  • Multi-year arrangements remain broadly available in the market, which can help insureds manage longer-term procurement budgets.

Alignment with related LOBs is a critical element of renewal strategy.

  • Insureds with any element of international risks will likely have three casualty renewals to monitor (U.S., umbrella and international) and should remain closely connected throughout the renewal process to prevent gaps and to leverage premium spend. Coordination among the renewals is critical, especially on issues such as occurrence and suit locations and coverage territory, as well as attachment strategy regarding excess limits.
  • Related lines of business will continue to impact international casualty renewals; however, recent data is showing that buyers can anticipate a stable landscape benefiting from carrier confidence and healthy competition.
  • Insureds can capture opportunities for leverage regarding pricing and terms by partnering with a select number of carriers who can support multiple lines of coverage.
  • U.S. casualty and international casualty both function as primary coverage with the excess and umbrella layers offering higher limits to both. Recent renewal trends across the portfolio reinforce the notion that attachment points for the international casualty is not often a reflection of loss activity, but more often an indicator of how best to spend premium, and by what limits an insured may need to evidence outside the U.S.

There are a few notable coverage terms which are shaped by early preparation and a focus on exposure data.

  • Communicable disease concerns are loosening a bit as our economies continue to regain traction. While exclusions remain fairly common, particularly in the hospitality industry, the policy language is still inconsistent across the market. If provided sufficient detailed information, underwriters may limit or remove the exclusionary language.
  • Following federal sanctions imposed in recent months in eastern Europe, global and regional carriers are restricting or eliminating coverage in Russia and Belarus and taking a closer look at their exposure to war risk coverage overall. Coverage from global programs is also a challenge for buyers’ subsidiaries in Ukraine, given the unstable landscape. In these cases, insureds should seek independent coverage in the local market, with additional focus to secure excess/DIC limits from the global programs.
  • PFAS issues (per & poly-fluoroalkyl substances) are increasingly visible, particularly for insureds in the manufacturing and retail space, and certain insureds are being asked to complete coverage questionnaires to avoid exclusionary language. Insureds can improve their results by offering carriers some detail about their product mix and a description of any risk management steps they’re taking to mitigate product risks.


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).

Each applicable policy of insurance must be reviewed to determine the extent, if any, of coverage for losses relating to the Ukraine crisis. Coverage may vary depending on the jurisdiction and circumstances. For global client programs it is critical to consider all local operations and how policies may or may not include coverage relating to the Ukraine crisis. 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 and/or other professional advisors. Some of the information in this publication may be compiled by third-party sources we consider reliable; however, we do not guarantee and are not responsible for the accuracy of such information. We assume no duty in contract, tort or otherwise in connection with this publication and expressly disclaim, to the fullest extent permitted by law, any liability in connection with this publication. Willis Towers Watson offers insurance-related services through its appropriately licensed entities in each jurisdiction in which it operates. The Ukraine crisis is a rapidly evolving situation and changes are occurring frequently. Willis Towers Watson does not undertake to update the information included herein after the date of publication. Accordingly, readers should be aware that certain content may have changed since the date of this publication. Please reach out to the author or your Willis Towers Watson contact for more information.


Director of Operations,
Global Services and Solutions
Corporate Risk and Broking

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