Modest rate increases provides little relief to an overcapitalised marketplace states Willis Towers Watson Report for the UK market
UK Marketplace Realities 2018 report highlights line of business analysis for UK insurance buyers.
Strong industry capitalisation helps contribute to a more measured rating environment for commercial insurance buyers in the UK, states a new market report launched by Willis Towers Watson.
Providing an overview of key sectors of insurance from transportation, natural resources and financial and executive risks, the report also highlights that insurers are seeking to improve the overall quality and risk-adequacy of their portfolio in an environment where rate increases following record losses in 2017 did not materialise as initially expected.
The report was compiled from Willis Towers Watson data across its corporate risk and broking sector for the UK region and is being launched on a bi-annual basis to provide a regular overview of the insurance marketplace across industry lines of business.
Clyde Bernstein, Head of Broking - GB, Willis Towers Watson, said: “Prolonged market softening has taken its toll on industry profitability, however, the industry remains fitter and more resilient than in any previous market-correcting event. The market did not respond with across-the-board increases in rates leading some insurers to make difficult choices over their continued involvement in underperforming lines.”
Using data across Willis Towers Watson’s corporate risk & broking lines of business, the report covers various lines of business including marine, motor, cyber and trade and political risk.
Line of Business and future price prediction:
- Marine Cargo - Flat (Nat-cat: +5% to +15%)
- Political Risk and Credit - Flat
- Trade Credit - Flat to +5%
- Financial & Executive Risks - PI:+5-10% with FI being largely flat
- UK Casualty - Flat to -5%
- UK Property - Flat to -5%
- Product Recall - +2.5% to 7.5%
- Environmental - Flat to 2.5%
- Terrorism and Political Violence -5% to flat