Posted in News on 03 Sep 2019

Casualty State of the Market London Update September 2019

Since our SOTM release in February this year, there has been a continued hardening of conditions, as carriers push for rate increases beyond the transportation and habitational industries and across the casualty sector as a whole.

This is even on clean business or accounts that have been historically under-priced, as carriers seek to apply corrective action and this has accelerated through the second half of the year.

There is also continued capacity withdrawal or line management for US utility and wildfire exposed risks and in the mid-stream energy and mining sectors. As a result, even higher rate increases are being imposed by renewing carriers or new “opportunist” capacity, taking advantage of the times.

Depending on who you speak to, carriers are predicting that hardening conditions are set to remain for a further 12 – 24 months, however this is dependent on remaining Hurricane season and any impact from US wildfire related losses as Australia enters its bushfire season...

A major contributor of these conditions in the general liability space is loss emergence from prior years which is worse than expected and this is due to the notable increase in the size of jury awards - in 2018 the 100 largest US jury verdicts ranged from US$22m to US$4.6 billion. [1]

The advice from the London Casualty Team for renewing and new business proposal is to submit presentations well ahead of their anniversary date and engage with your Broker and underwriters to manage expectations.

This information is not intended to constitute any form of opinion or specific guidance and recipients should not infer any opinion or specific guidance from its content. Recipients should not rely exclusively on the information contained in the bulletin and should make decisions based on a full consideration of all available information. We make no warranties, express or implied, as to the accuracy, reliability or correctness of the information provided. We and our officers, employees or agents shall not be responsible for any loss whatsoever arising from the recipient’s reliance upon any information we provide and exclude liability for the statistical content to fullest extent permitted by law.