Rates

Many insurance carriers will struggle to make a profit this year, as despite increased rates, carriers’ books are still underperforming, according to RPS executive James Rozzi.

As negotiations begin to pick up heading into January reinsurance renewals, a clear contrast has emerged among executives between the profitability and availability of capacity across the property and casualty markets.

Rate increases gain steam during Q3 for umbrella, BOP, general liability and commercial property, Ivans reports, while commercial auto upticks slow.

Rates in the P&C market continued to rise in the third quarter, with outsized increases for cyber insurance driving up the average change, according to data revealed in company third-quarter conference calls.

The co-CEO said that rate increases at the company averaged about 10% in the quarter and were higher for casualty and professional lines.

The chief executive also echoed the comments of RenaissanceRe’s CEO, who said that more than just climate change has contributed to higher catastrophe costs.

Global commercial pricing gains 15% in Q3, pushed higher by ransomware-driven cyber increases.

Capping the firm’s positive quarterly results, Travelers noted a strong but moderating rate in the business insurance segment in a positive read-through for commercial lines carriers.

Key themes included the intensification of the battle for talent, climate change and confidence that rate rises will persist.

Increasing cat losses, combined with social inflation, put ESG and climate change at top of the mind even as the market sees strong growth, says Guy Carpenter’s John Trace.

Strategic Review Committee chairman Bruce Simberg sets out the challenge ahead for FedNat as natural catastrophes continue to hit southern policyholders.

Price increases for high-hazard risks range between 15%-25%, down from +30% increases last year, while better performing classes are seeing 5%-10% rate increases.