Rates

The protracted firming phase of the cycle continues, with E&S firmer than the admitted market.

The broker has reported successive slowdowns since price increases climbed to a peak in Q1 2020.

The insurer reported total P&C rate increases of 8% for the third straight quarter, down from the 13% gains in last year’s fourth quarter.

The company predicts a continued hard market across most lines for the year, with transportation, education, marine and cyber among those expected to rise the most.

The carrier is seeking to combat a return to pre-pandemic claims frequency and surging claims severity.

Cyber rates continue to spike globally, along with financial and professional lines, Marsh data shows.

Woodruff Sawyer noted that the SEC, Finra, and the DoJ are likely to continue focusing on the SPAC market in 2022.

For the SPAC market, sources said that prices should continue to harden, while D&O rates are expected to stabilize amid a capacity flush.

The firm reported encouraging quarterly earnings, but social inflation and other challenges still loom.

Although auto insurance rates dipped briefly, the average rate whipsawed 3% since 2020 and up 26% since 2011.

In December, SLTX reported nearly $830mn in surplus lines premium, representing a 15.3% year-on-year increase and marking the highest recorded December in the 33-year history of the non-profit Texan organization.

Commercial lines loss ratios may move slightly higher, while personal auto carriers see the light at the end of the loss-cost tunnel.