Title : Market continues to harden: Gallagher
link : Market continues to harden: Gallagher
Market continues to harden: Gallagher
Uncertainty and a “more measured attitude” towards risk across several sectors continue to dog the market, according to broker Arthur J Gallagher’s second quarter review of the industry.
“The market continues to harden, which re-emphasises the critical role of a broker, especially for specialist or harder-to-place risk,” Head of Corporate Broking Mark Oatway says.
“This is changing the insurance conversation in response to shifting insurer appetite, premium changes and increased scrutiny of an organisation’s claims history following a rising number of complex claims off the back of extreme weather events and economic change.”
In property, insurers are asking more questions at renewal time and winding back capacity on high hazard risks such as those with highly combustible assets.
“That said, we are not seeing a narrowing of coverage,” the review says. “The current focus is on price and deductibles and at this stage we are not seeing aspects of cover being stripped out of policy wordings.”
Underwriters are having to tap more often than usual into their referral network for issues that may not have been considered or reviewed historically.
They are also looking for increased rates and/or deductibles for clients with poor claims history. In the worst-case scenarios, they are giving advance warnings that cover may no longer be provided.
The fallout from Cyclone Debbie and other extreme weather events continue to reverberate in the industry, with a rise in long-tail claims and emerging exposures challenging both businesses and insurers.
“For those where cover can be provided, premium increases across the board are expected,” the review says.
“From a claims perspective, the fall-out from extreme weather events creates added complexity while insurers and their suppliers work to resolve a broad range of issues including transport networks and infrastructure, telecommunications, supply related delays and properties with long-term damage that may be beyond economic repair.”
“The market continues to harden, which re-emphasises the critical role of a broker, especially for specialist or harder-to-place risk,” Head of Corporate Broking Mark Oatway says.
“This is changing the insurance conversation in response to shifting insurer appetite, premium changes and increased scrutiny of an organisation’s claims history following a rising number of complex claims off the back of extreme weather events and economic change.”
In property, insurers are asking more questions at renewal time and winding back capacity on high hazard risks such as those with highly combustible assets.
“That said, we are not seeing a narrowing of coverage,” the review says. “The current focus is on price and deductibles and at this stage we are not seeing aspects of cover being stripped out of policy wordings.”
Underwriters are having to tap more often than usual into their referral network for issues that may not have been considered or reviewed historically.
They are also looking for increased rates and/or deductibles for clients with poor claims history. In the worst-case scenarios, they are giving advance warnings that cover may no longer be provided.
The fallout from Cyclone Debbie and other extreme weather events continue to reverberate in the industry, with a rise in long-tail claims and emerging exposures challenging both businesses and insurers.
“For those where cover can be provided, premium increases across the board are expected,” the review says.
“From a claims perspective, the fall-out from extreme weather events creates added complexity while insurers and their suppliers work to resolve a broad range of issues including transport networks and infrastructure, telecommunications, supply related delays and properties with long-term damage that may be beyond economic repair.”