| Trend | Range | |
|---|---|---|
| Structured programs |  |
Flat |
| Parametric nat cat |  |
-5% to +10% |
| Parametric non-cat |  |
Flat |
| Portfolio programs | Limited carrier appetite | |
| Captive stop loss | |
Flat |
Key takeaway: Alternative risk transfer options continue to be in high demand, especially for clients with challenging risk profiles and/or poor loss experience.
Whether annual or multiyear, parametric and structured solutions will continue to be the most traded ART products in 2024, because they address insurance gaps or disintermediate traditional placements.
Parametric solutions
These programs typically address natural catastrophe or weather risks, but also pandemic and elements of cyber risk. Their deployment typically complements a property placement, adding capacity or protecting deductibles or uninsured assets. They are also used to protect against loss of revenue where weather conditions impact productivity. WTW is also often deploying these programs to support lender financing and for government-led climate, environmental and social resilience initiatives.
- Capacity is increasing in this active insurance market, both annual and multiyear.
- Earthquake and hurricanes are the most frequently traded perils with increasing interest in wildfire, hail, tornado and general weather perils, such as rainfall and temperature/heat stress.
- Insurers are deploying parametric capacity to create pro-client differentiating programs.
- Wider client adoption continues following years of education and loss-proving events.
Structured solutions
- Deployed where premium to policy limit ratios exceeds 40% annually
- Activity focused on real estate-driven property programs, and fleet driven auto risks
- Increasing multiline deployment as reinsurance of captive insurance companies
Other areas of interest
- Collateral-free fronting for highly creditworthy companies
- Portfolio/integrated risk programs
- Capital market-led solutions
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).
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