Delegated authority market update - life after Ian

This does not just apply to property. Whilst properly business is still the larger segment of the delegated authority world, reinsurance changes have affected most lines of business. Casualty, with its tail and opportunity for reserve release, also attracts more underwriting capital, as do other lines - marine, financial lines, some resurgence even in cyber (views on war clauses depending…). 
 
The property market at large also changes - rates jump, and in places like Florida rates soar and deductibles for wind appear to find a new normal. But the market maintains its income, albeit for vastly reduced exposure, as is the way of the hard cycle. This in turn creates opportunity to diversify agg - and it moves far. Canada, Europe & Australia have all seen recent price increases, at varying levels. Local markets have also been reducing their agg whilst maintaining income, so Lloyd’s players find more attractive opportunities in those jurisdictions, using the agg that was once placed on the Gulf of Mexico. The market will keep a keen eye on wind activity in 2023 - Hurricane Idalia made a landfall in the ‘least bad place’ but what if it had not? In spite of all the changes made, and analysis which highlights resilience to severe storms, we will all be watching closely.   

Canada, Europe and Australia have all seen recent price increases, at varying levels. Local markets have also been reducing their agg whilst maintaining income, so Lloyd’s players find more attractive opportunities in those jurisdictions, using the agg that was once placed on the Gulf of Mexico. And the market will keep a keen eye on wind activity in 2023, we are in the hurricane season and in spite of all the changes made, and analysis which highlights their resilience to severe storms, we will all be watching closely.   
 
But as all this takes place, some signposts are appearing for growth. Some of that growth is simply to cover inflation and rate on existing exposures, but some is also growth in exposure. Various syndicates and companies are privately discussing increases for 2024, and whilst they may be cautious and controlled, they are forward steps.       
 
For agents and brokers who have genuinely partnered with their underwriters and capacity providers over the trailing period, working together to manage risk and properly adapt to conditions, there will be opportunities ahead. Others who may have fought back and sought to continue to prior cycle may struggle a little more.   
 
The market is prepared to entertain opportunity, as always. As we walk thorough 2023, we will see the impact of changes in results from Lloyd’s and other carriers. Prevailing conditions look good and that might just open things up a little for 2024.