Article / Risk Management
P&C Market Update: Market Remains Competitive Despite Select Carrier Changes
P&C Market Update: Market Remains Competitive Despite Select Carrier Changes Hero Image

After another year of underwriting profits and strong capitalization, the current property/casualty marketplace remains very competitive through the first half of 2016.

Lockton’s July 2016 Market Update notes that With the exception of commercial auto, rates continue to decline across all other P&C coverages. This declining rate environment puts pressure on underwriters to seek growth from new business, creating a competitive dynamic across most products and industries. This is occurring even in today’s low-interest-rate environment, which requires even larger underwriting profits to hit targeted returns on capital.

Soft market conditions continue in property, where overlying capacity and competition give companies plenty of choices.

“When our clients have large, complex risks, their insurance placement may have anywhere from three to 50 carriers participating,” explained Greg DiPrato, with Lockton in New York. “When capacity is oversubscribed, we are able to strategically partner with carriers that fit in the program at the broadest terms and price. This could result in positive changes in the overall structure of a program for our clients.”

Within the casualty market, Sustained competition extends throughout most casualty products in terms, conditions, and risk financing alternatives. Despite some changes in strategy from a few markets, most underwriters are interested in growth, albeit at sustainable prices.

Lockton’s July 2016 Market Update also provides the latest information on the following areas:

  • International
  • Terrorism
  • Financial
  • Cyber
  • Surety
  • Construction
  • Real Estate
  • Healthcare
  • Environmental
  • Energy

Read more about these developments and the full property and casualty report in Lockton’s July 2016 Property & Casualty Market Update

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Market_Update-July_2016 (3 MB)
    
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