Insurance Marketplace Insights & Observations, 2022 End of Year Report
By Alliant / January 12, 2023
The Alliant Insurance Marketplace Insights & Observations, 2022 End of Year Report is the third state of the insurance market report produced by Alliant. The observations and commentary are gleaned from our industry-specific broking teams, in their own words, and are intended to reflect their individuality and ways of looking at their respective markets.
The second half of the year was a challenge with two major hurricanes hitting the coast of Florida. These caused unprecedented losses, challenging an already distressed market, and exacerbating the strain on worldwide supply chains. As a result, we expect a reduction in capacity throughout the world market, especially capacity for natural catastrophe cover. This reduction in capacity is already apparent following January 1, 2023 treaty renewals. This could create an opportunity for unused treaty capacity to be offered as facultative capacity, assumedly at very opportunistic pricing. Unfortunately, we do expect certain lines of insurance to follow in the increases we see in property, especially in the lead and excess casualty programs.
Navigating the challenging and ever-changing market requires a strategic plan within risk management departments.
- Begin renewal discussions early with underwriters and share details about your risk management organization, culture and processes.
- Endeavor to be organized and prepared.
- Start early on the renewal process.
- Stand ready to provide more detailed exposure information than has been requested or required in prior years.
As a result of the pressure we expect on the market, we have included a special, and now regular, section to our report on alternative risk programs that could present viable solutions to clients looking for alternatives to traditional insurance. As we observe and experience any significant changes in cost and capacity, we will also from time to time produce updated versions of the trend report in order to make clients aware of changing market conditions real-time.
Please contact us if additional clarity within the Insurance Marketplace Insights & Observations End of Year Report 2022 is desired.
Alliant note and disclaimer: This document is designed to provide general information and guidance. Please note that prior to implementation your legal counsel should review all details or policy information. Alliant Insurance Services does not provide legal advice or legal opinions. If a legal opinion is needed, please seek the services of your own legal advisor or ask Alliant Insurance Services for a referral. This document is provided on an “as is” basis without any warranty of any kind. Alliant Insurance Services disclaims any liability for any loss or damage from reliance on this document.
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