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North American Property: How to Navigate These Uncertain Times

United Insurance Brokers Limited

We are a leading independent Lloyd's insurance and reinsurance broker and an integral part of UIB Group.

发布日期: 2024年9月23日

INCREASED COMPETITION

There has been a general uplift in available capacity with new markets coming to the table after being away for two or more years, additionally incumbent markets are keen to expand their position on business they hold. This has resulted in increased competition in H1 2024 within the London & International market as well as competing against Domestic markets.

OPPORTUNITIES IN LONDON

There remains a good flow of new opportunities into London as certain industries or perils within the domestic market’s appetite remains challenging for 2024. As a team have seen over a 100% increase in new enquiries. Conversely renewals either in London or domestically have been under pressure as directives around rate reduction on existing business allows non-incumbent capacity to view the risk as new without the constraint of a maximum reduction threshold, regardless of rate adequacy of the risk.

CATASTROPHE PERILS

Looking at Catastrophe perils, many markets had stopped writing new wind aggregate at the 1st of July, particularly in Florida and the Gulf coast, as the wind season is in full flow. Severe Convected Storm (SCS) is increasingly a factor for insurers, by example 70% of H1 2024 USD60BN of catastrophe losses have been caused by SCS.

DEDUCTIBLES REMAIN FIRM

Deductibles remain firm along with general terms and conditions. After four years of adjustment underwriters are resisting a return to attrition on a core book, bearing in mind Insurers are averaging 85-90% combined operating ratio, even after the rate fatigue Insured’s have endured since 2019. Therefore, pricing and capacity are currently the main levers in the market as it would likely not take much in terms of deductible reductions to change the dial on the ratios.

THE SECOND HALF OF 2024

As H2 is well under way, the continuation of the improved market conditions for clients is anticipated, and as markets continue to seek to achieve business plans, competition to retain business will become more challenging for the remainder of the year. The picture may become clearer by the end of September as the meeting of reinsurance minds at the Monte Carlo Rendezvous will have taken place, and the predicted overactive hurricane season would have past it’s most active month.

Successful Industries in 2024