The US property and casualty insurance market has seen a surplus of growth in the last several years, leading to ample capacity and favorable rates. Overall, it continues to be a buyer-friendly environment that is not expected to change soon, barring a catastrophic event. In this Market Update, Lockton provides current insight into this trend’s effects on clients’ insurance programs.
For property, the increased capacity and decreased rates are prompting traditional insurers to become more competitive to maintain market share. This has led to lower prices and a variety of options for buyers in both the capital and middle markets.
The abundance of capacity in casualty has created what some refer to as “E&S creep.” Historically only accessible through wholesalers, excess and surplus (E&S) lines are now entering the retail space and producing greater competition for standard lines markets. The sourcing of capital is evolving and going to have a continued impact on the market.
The competitive trend is also reaching into workers’ compensation. Data from Lockton’s own analytics group on policy rate changes in guaranteed-cost and loss-sensitive programs are featured, highlighting a decrease in rates for both.
Read more about these developments along with special updates in cyber (including its impact on the financial services and healthcare sectors), surety, construction, and energy in Lockton’s latest Property & Casualty Update.