Rates

Palomar CEO: E&S market seeing “reinvigoration” of hardening in Q4

There is currently a “reinvigoration” of hardening within the excess and surplus (E&S) lines market as pricing continues to rise even further quarter over quarter, according to Palomar CEO Mac Armstrong.

Markel’s Whitt: Rate momentum picked back up in Q3

Markel co-CEO Richie Whitt has commented that rates gained more momentum in the third quarter after previously cresting, with the executive confident of seeing “nice rate increases” in 2022.

Swiss Re’s Jones: Casualty uncertainty brings rate adequacy into question

It is not clear casualty insurance rate increases are keeping pace with elevated loss trends, according to Swiss Re’s head of casualty underwriting for North America Brian Jones, who notes his company is seeing “selective opportunities” to grow in this area as a reinsurer.

CinFin staying ahead of loss costs despite slowing rate rises

Cincinnati Financial continues to secure property and casualty (P&C) renewal pricing ahead of prospective loss cost trends even as rate rises start to slow and the market contends with broad inflationary trends, chairman, president and CEO Steven Johnston told analysts on Thursday.

Grandisson: Improved cat returns could see Arch make more meaningful 1.1 play

Arch Capital Group could deploy more capital to property catastrophe reinsurance at 1 January if rates harden enough to meet its expected return hurdles, as CEO Marc Grandisson said he remains confident there will be another true hard market in the sector in the future.

Universal shares up 6% on earnings beat and rate momentum

Shares in Florida carrier Universal Insurance Holdings were trading up 6 percent this morning as investors reacted positively to an earnings beat and commentary from management about rate momentum and the impact of property insurance reform in the Sunshine State.

Greenberg says Chubb rate increases well ahead of loss costs despite moderation

Chubb is achieving rate increases of 12 percent in North America commercial lines and 15 percent in international retail commercial P&C business, well in excess of loss costs which are currently trending at 5.5 percent and 3 percent respectively, according to chairman and CEO Evan Greenberg.

Marsh: Cyber continues to lead global insurance price increases

Cyber has continued to lead insurance price rises with increases of 96 percent in the US and 73 percent in the UK during the third quarter, according to Marsh’s latest Global Insurance Market Index.

Glaser: Near-term inflection to soft market unlikely with Q3 rate increases stable at 15%

The Marsh Global Insurance Market Index was stable in the third quarter with average price increases of 15 percent year on year, although financial and professional lines pricing was up 32 percent driven by a near doubling in cyber rates.

Travelers’ Schnitzer: Pricing “will continue to be strong” despite Q3 deceleration

Shares in Travelers have risen following the firm’s Q3 earnings beat, with management commenting that business insurance pricing will remain strong despite some tapering during the quarter while $255mn of potential recovery remains on its property aggregate catastrophe XoL treaty for the fourth quarter.

Hannover Re’s Pickel: Flat 1.1 renewals in Germany “completely off the table”

German property treaty portfolios are not expected to renew with less than double-digit increases at 1 January, with cedants hit by losses from the Bernd flooding told to expect rate rises of over 20 percent, Hannover Re’s Michael Pickel has said.

Munich Re’s Höpke: inflation and Euro cat losses to fuel “prolonged” hardening

Munich Re expects “prolonged” reinsurance market hardening with major losses and inflation set to push rates higher at the January 2022 renewals, particularly for loss-hit European contracts.

E+S Rück expects “markedly” higher pricing at 1.1 following 2021 losses

Hannover Re’s German subsidiary E+S Rück has said it anticipates higher prices at renewal following this summer’s flood losses, adding that the event will likely prompt many insurers to expand their reinsurance coverage.

Letter from The Broadmoor: business (almost) as usual

There is no doubt that the P&C insurance industry rapidly adapted to the challenges of operating through Covid-19, with a swift and largely successful transition to remote working that could reshape working practices as the pandemic finally recedes.

Berenberg: Cyber dislocation points to multi-year rate increases

Cyber is emerging as a “truly unique” class of business where long-established players such as Beazley and Munich Re have a head start in capitalising on a prolonged, multi-year period of market hardening where demand outstrips supply, according to Berenberg.

MarketScout: US commercial rate increases pick back up in Q3

MarketScout’s composite rate for commercial insurance pricing was up 6.8 percent in the third quarter compared to up 5.9 percent in the second quarter of 2021.

Marsh: Every UK cyber renewal likely to see premium increase in Q3

Cyber insurance pricing is continuing to “sharply increase” with the latest Marsh UK cyber report revealing that 98 percent of clients that bought cover through the London market saw a rise in pricing in Q2.

Auto losses spike as frequency and severity jump post pandemic amid car shortage

Auto insurers are facing soaring losses as driving returns to pre-pandemic levels with claims frequency and severity on the rise while costs to repair or replace vehicles have also spiked amid a shortage of parts and new and used cars, with consumers set to face increased pricing unless these trends reverse.

Miller: Marine hull now “a hard market” after repeated rate rises

European cat in focus as reinsurers expected to push for meaningful 1.1 increases

Escalating insured losses of €10bn+ from the European floods will meaningfully impact some reinsurers and retro writers and drive 1 January cat renewal discussions on the continent as underwriters push hard for higher rates and buyers argue that moderation is warranted due to historically low loss ratios.

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