Select Page

Business people with digital tablet in modern lobby


Lockton has released its July 2016 P&C Market Update, and after another year of underwriting profits and strong capitalization, the current property/casualty marketplace remains very competitive through the first half of 2016.

Two of the largest carriers—AIG and Zurich—have altered their underwriting approach or moved away from certain niches, but new capacity continues to come into the market, both domestically and internationally.

“With the exception of commercial auto, rates continue to decline across all other P&C coverages. ”

With the exception of commercial auto, rates continue to decline across all other P&C coverages. This declining rate environment puts pressure on underwriters to seek growth from new business, creating a competitive dynamic across most products and industries. This is occurring even in today’s low-interest-rate environment, which requires even larger underwriting profits to hit targeted returns on capital.


In addition, this report also features update on the following areas:

  • International: Increased Buyer Focus and Insurer Restructuring Disruptions
  • Terrorism: Recent Events Spur Widespread Review of Terrorism Coverage
  • Financial Services: Executive Lines Continued to be Favorable to Buyers
  • Cyber: Collaboration Among Cyber, Casualty, and Property Generates More Comprehensive Solutions
  • Surety: Profitability Continues to Prevail
  • Construction: Carrier Exit Spurs Search for New Coverage
  • Real Estate: Carrier Disruption Leaves Companies Cautious
  • Healthcare: M&A Activity Fosters Plenty of Market Capacity
  • Environmental: Pollution Legal Liability Carrier Change Creates Initial Uncertainty, Tempered by Market Interest
  • Energy: Too Early to Say the Market has Reached Bottom

Read more about these developments in Lockton’s July 2016 Property & Casualty Market Update.