• London continues to provide competitively priced accident & health solutions, with increasing capacity and stable rates.
• High-risk international personal accident & travel remains in high demand, especially for territories such as Russia/Ukraine and Israel/Gaza for which London continues to provide coverage.
• With M&A activity on the rise, we can also help to build insurance solutions with products that are designed to protect client’s acquisitions.
• London’s accident & health space continues to grow and cater for all levels of risk, whether large open market placements or delegated solutions.

• The US has seen a distinct increase in high profile shooting events, which is leading risk managers and governing boards to assess the value of the product and integrated crisis management/response services through a different lens.
• Purchasing activity has increased, with pricing having been built into budgets from prior investigation of markets by more savvy buyers.
• Pricing is refined to match the exposed risk and the territory, rather than blanket state-wide pricing. This leads to more appropriate and affordable premium levels.
• Our USD50m any one risk active assailant facility is growing in terms of sophistication and relevance, ensuring that tailored wordings match the specific needs of the clients.

Bloodstock

• New Lloyd’s syndicate now also has a new Bloodstock team, leading to an increase in capacity in the London market.

Livestock

• Tending to see small rate increases on livestock renewal business – roughly around the 5% mark.
• An increase of enquiries in London for named perils and all risks as a result of a reduction in local US capacity.
• The avian influenza (AI) landscape continues to evolve with the testing and viability of a vaccine and also the spread of the disease into US dairy farms. As a result, capacity for AI is currently extremely limited in the London market.

• Increased competition and new capacity: The London cargo market is experiencing modest reductions on renewals and heightened competition for new business. This trend is driven by underwriters seeking growth and the entry of new capacity into the market, with K2 Rubicon Specialty being the most recent entrant.
• Appetite for challenging risks: While underwriters are maintaining discipline, there is a noticeable increase in appetite and competition for risks with more challenging profiles. This includes exposures such as rolling stock, retail outlets, and accounts with distressed loss records.
• Benefits from domestic market fallout: The London cargo market continues to benefit from the challenges faced by the domestic property markets. Intermediaries are increasingly exploring stock throughputs (STPs) as a strategy to mitigate rate increases and offer alternative marketing options.

• Reinsurance increases observed during 2023 and early 2024 have eased off with some markets giving flat renewals for the first time in a number of years.
• However, following the movement started in January 2023, local markets are still pushing for increases on all accounts, varying from close to flat to 15%, depending on the island and carrier.
• Following recent treaty renewals, local markets do have new capacity again for the first time in 18 months. However, this comes at “cost” of certain requirements in respect of conditions and pricing.
• As mentioned, rate increases from international panels on the whole have slowed in most islands compared to last year, varying from 2% to 10%. However, islands that are seen to not have rate adequacy are still seeing a large push similar to 2023.
• In some of the northern territories, such as certain islands in the Bahamas, new wind capacity remains very scarce, with the international insurers still really being the only available market. Here the local insurance companies are still coming off or reducing lines on accounts, as they look to restructure parts of their books.
• Values, inflation and reappraisals remain a big discussion point with accounts being punished with average subjectivities for updates and larger increases if values have not increased in the last 18 months.
• Beachfront hotels remain the hardest occupancy to place, with a large amount of the capacity pulling out of the occupancy since 2017.
• Hurricane Beryl, which was the earliest category five Atlantic hurricane in records going back around 100 years, is yet to have an impact on the market. In the Caribbean, Hurricane Beryl, remarkably, bypassed nearly all the primary islands, resulting in far less devastation than initially anticipated. Regrettably, the outer islands of both Grenada and St Vincent were significantly impacted by Hurricane Beryl, however, the larger main islands of Grenada, Barbados, the Cayman Islands, and Jamaica fortuitously evaded direct hits. Consequently, the estimated losses for the main insurance and reinsurance markets remain on the lower side, given the scale of the event.

• The Canadian casualty marketplace is generally experiencing rate decreases across most classes of business due to increased capacity available in the market both locally and in London.
• The appetite of carriers is increasing in traditionally more challenging areas such as roofing, leading to a squeeze on rates.
• In some areas capacity remains challenging, so example transportation with US mileage due to nuclear verdict emanating out of the US.
• The new capacity in London is due to new entrants such as Markel and also insurer’s desire to grow following better underwriting results in the last 12 months.
• Overall, a buoyant environment that presents lots of new business opportunities, but also the need to scrutinise renewals.

• The US casualty space remains tough with rate increases remaining on large complex placements, as casualty loss reserving still significantly under reserved, more large casualty loss activity and litigation funding creating pressure on rates.
• Most markets remain disciplined with capacity and pricing.
• Appetite changes within the US Casualty arena have witnessed certain carriers removing access to capacity out of London and Bermuda, reverting to US only access. In turn, reduced capacity for certain classes of business which can put pressure on the rating environment.
• New capacity with First Specialty Excess (MGA) into the Bermuda market with USD15m capacity backed by Mitsui Sumitomo Insurance Company.
• Helix Bermuda has bolstered its efforts with boots on the ground in London alongside a new ability to deploy an additional USD5m capacity to place within the first USD50m of casualty programs, supported by Lancashire Re.
• As recently noted within specific insurance press, AXA XL Bermuda are downsizing.
• Overall, a tough but manageable landscape. One in which clear and concise underwriting information is imperative to highlight differentiation efforts from insureds to tackle the current litigation and loss landscape to successfully navigate the underwriting environment.

• Overall, rating continues to be relatively stable although target business is continuing to see slight rate reductions. This is being offset with business which is out of appetite (such as heavily weather exposed outdoor events) where rating is increasing.
• Appetite to write contingency business is strong after a period of positive results. Insurers are looking to grow, and this is leading to many insurers broadening their product offering and looking for new distribution channels.
• Capacity continues to increase via new entrants and existing markets looking to grow. This is not seen on all risks though as many insurers are being highly selective where their capacity is being deployed. Terms and conditions are relatively stable but the increase in capacity is contributing to softening of rates for target business.

• The cyber market is currently in an improved state for buyers, exhibiting a trend of regular rate decreases for non-distressed risks. With an influx of new entrants to the underwriting market, there is fierce competition amongst insurers to win and retain business.
• Simultaneously, the current landscape is characterised by heightened risk. Many insurers have reported a substantial increase in the frequency of ransomware attacks. However, this rise in risk has not had a negative effect on pricing since the hard market which highlights the foundations are now in place for a mature market.
• Market capacity has increased with some insurers able to deploy USD10m - USD15m lines. This is helping to boost the attractiveness of the London market and maintain a competitive advantage compared with other international markets.
• Insurers, in general, are demonstrating a willingness to expand their appetite for international territories and thereby increase the volume of non-US business they manage. Moreover, a growing number of insurers are planning to move into primary positions during the remainder of 2024.
• Policy coverages have remained consistent with insurers offering full limits on the ‘core’ cyber insurance coverages, with sub-limits for supplemental coverages such as cyber-crime. Carriers are taking a more lenient approach to cyber security controls by not imposing ransomware coinsurance unless they deem it absolutely necessary, i.e. if an insured’s security controls fall below minimum standards.
• London is having success on traditionally challenging risks such as Manufacturers, Architect and Engineering Firms, Healthcare, Municipalities, School Boards, Law Firms and risks with high PII count.

• After enduring several challenging years, downstream energy clients who have concentrated on the quality of risk and the sufficiency of their assets can anticipate a more favourable response from insurers regarding rate movements.
• Compared to 2023 where treaty reinsurance renewals saw increasing rates and tightening of terms and conditions – or both for some buyers, 2024 treaty renewals on the 1st January up to and including the 1st July were much more measured.
• The level of capacity remains steady if not a slight increase to circa USD3.95bn compared to circa USD3.75bn at the end of 2023. We're witnessing a rise in "new" capacity entering the market predominantly through Lloyd’s and MGA operations. This further contributes to creating competitive tension within the insurance market for the insured.
• Like in many cases across the property & casualty sectors, insurers have a sustained emphasis on asset valuations, both PD and BI, ensures client accuracy in declaring their at-risk assets.
• In February this year, the Lloyd’s Market Association (LMA) introduced a new BI Volatility Clause LMA 5515A that specifically addresses partial losses.
• Insurers continue to focus on Natural Catastrophe exposures and the associated capital costs in order to manage their risks and advocate for adequate cost assignment in this area.
• The majority of insurers are looking to maintain current levels of premium with some looking for premium growth by utilising more of their available stamp capacity and with downstream premium now circa USD4bn, this will inevitably lead to more competitiveness. This will ultimately result in a continuation of further softening of rates. This is particularly true for risks considered well-engineered and those with benign loss records.

• Following a few years of poor results driven by offshore pollution losses and US onshore litigation, we are now seeing profitability return to the marine and energy liability sector. We are at a stage in the market cycle where rates are levelling off and there is a more positive environment for buyers.
• The recent Francis Key Bridge collapse in the USA has the potential to disrupt the market’s recovery. It is early days, but the loss does have the potential to be a significant loss event. Whilst it is not an energy loss – it does impact the pool of carriers from which a large amount of energy liability capacity is drawn – particularly in the offshore and onshore US sectors. If this loss does crystalise into a material market event – these carriers may look to impose portfolio wide adjustments. However, it is still in its infancy, and it will take some time before we fully understand the extent of the loss from an insurance perspective.
• The US energy liability sector has been one of the most challenging sectors for casualty underwriters for the past 5 years or so. The litigious nature of the territory has led to an increase in claims awards and this momentum does not seem to be abating. This has been coupled with an increase of activity as buoyant oil prices have driven drilling & production causing an increase in loss frequency.
• However, we are seeing an increase in appetite from London underwriters in areas which have not traditionally been in focus. In particular contracting risks at a primary level and smaller E&P operations. The rating of these accounts is now at a level where London carriers feel comfortable participating. This has been coupled with their US counterparts scaling back appetite and limits deployed. They have not been immune from the same claims pressures that London has been experiencing and they are now taking corrective action to rebalance their portfolios.
• The re-structure of the JH Blades liability program has also put upwards pressure on rating for upstream operators. This has led to more opportunities for carriers who have viewed the historical pricing of these risks as too competitive. Now the pricing is reaching a breakeven price which is tempting renewed competition from the London market.
• On offshore energy business, there is ample capacity available and plenty of new entrants into the class, such as Dale, the Ark Consortium, Everest, OP, Probitas and Westfield. In addition, existing markets are keen to diversify their portfolios away from more heavily exposed onshore accounts with heavier auto risks. This has driven competition in this subclass.

• The midstream sector continues to be covered by both upstream and downstream markets in London. This is advantageous for the client, particularly for clean and/or expanding accounts, as the abundant capacity and competition between the upstream and downstream markets may provide opportunities for savings. Despite an increase in losses over recent years, overall capacity remains steady and easily accessible, although it greatly depends on the quality of the risk.
• There have been several losses in the midstream space over the past few years, mostly related to midstream processing plants. These losses have had significant impacts on property damage, business interruption and contingent business interruption, leading to a renewed focus on this part of the portfolio.
• Business interruption volatility clauses are now seen on various risks and can differ based on the perceived likely level of activity. Increased focus on business interruption waiting periods with respect to service interruption, civil & military authority, and ingress/egress coverages.
• As in previous years, there continues to be a focus on the renewal values reported, with professional valuation reports still being preferred by markets.
• As the market shows signs of softening, we believe that there is still a variation in rate movement dependant on the size of the client’s risk and growth potential. Accounts with smaller premiums are still under scrutiny as insurers are trying to make sure they are getting the right cost of capital for their exposures.

• Capacity in the power sector is increasing as new entrants see an opportunity following significant rating correction over the last five years. The additional capacity will inevitably lead to some reductions with increases confined to loss impacted business.
• ESG criteria is still driving significant constraints in capacity for coal generation, although more flexibility is being seen in the gas fired sector as “energy transition” becomes the driving criteria for risk acceptability.
• Asset valuation remains a key feature, with professional updated valuations being the preferred method as opposed to relying on application of generic Index increase.
• Business interruption volatility controls remain a requirement where plants are operating and dispatching on a merchant basis in deregulated markets.
• Renewable capacity remains plentiful and competitive despite several high-profile major losses. However, capacity for hail exposed risks in convective storm affected areas is significantly reduced.
• Whilst the market pricing trend is positive for customers, we are at the start of an anticipated “above average” Atlantic windstorm season which depending on impact could have impact on pricing and treaties towards year end.

• Financial institutions market evolving with a new fit for purpose product encompassing D&O, E&O, EPL, fiduciary, crime and cyber coverage. This is the first of its kind in the London financial institution space.
• Commercial D&O rates continue to soften year on year, however single digit decreases are expected towards the latter end of the year with a bigger focus on coverage enhancements for insureds.
• Increased appetite within the international ancillary lines space, a lot more markets considering crime, EPL and fiduciary in conjunction with the D&O for non-US domiciled insureds.
• Financial institution crime is a growing sector with insurers in London able to offer full social engineering fraud limits with and without authorisation.

• Rates remain high across the board with underwriting results not supporting any reduction.
• Company markets are showing more appetite than Lloyd’s.
• Appetite is consistently conservative. Due to increasingly difficult domestic conditions, we and the market generally, have seen a huge influx of submissions. Underwriters have generally chosen to slim appetite to larger business only.
• In the last 12 months, we have seen the underwriters consider broader exposures opportunistically outside of LTC and hospitals. This includes risks with correctional exposure (minimum retention of USD250k on correctional risks).
• The focus internally is on risks where domestic markets are struggling and where potential issues with concurrent retroactive date (i.e. post risk being part of a risk retention group). Recent wins have largely been on distressed placements with London providing the only solution.
• Targeting insured’s who are looking to increase retentions and reduce risk transfer in exchange for premium relief is in scope for underwriters. This lends itself specifically to large organisations such as LTC networks and hospital risks.

• Improved London marine market insurer results coupled with lower investment returns has driven increased capital/capacity which has triggered an earlier than expected soft market cycle.
• Following IMO’s recent expanded emission control zones Miller have launched an exclusive Marine Pollution Product (MARPOL).
• The London market is seeing a shift towards digitalisation, with insurers increasingly using technology to improve risk assessment and policy administration. The integration of big data, artificial intelligence and blockchain technology are expected to drive further innovation in the marine hull insurance sector.
• Looking forward, the marine hull insurance market in London is expected to navigate through the current challenges with resilience. While the market remains competitive, insurers who can adapt to changing risk landscapes, embrace technology and respond to regulatory changes are likely to thrive.

• Market conditions are good for advertising, film & TV business and specialist underwriters are providing good capacity, competitive rates and best in class wordings.
• Global AdWrap programmes remain challenging and require highly specialised broker knowledge and experience.

• Growing interest and adoption: the parametric insurance market is experiencing increased interest and adoption, driven by the need for quicker payouts and more predictable claims processes in the face of escalating natural disasters and climate change impacts. Several London market syndicates have launched parametric divisions since the start of 2024.
• Expanding coverage areas: there's a notable expansion in the range of risks covered by parametric insurance, extending beyond traditional natural catastrophes to include events like pandemics, crop failures, and cyber risks.
• Scarce traditional capacity: hybrid parametric insurance solutions are being designed in conjunction with traditional insurance policies to help close the protection gap, providing bespoke solutions to meet exact client needs.

• People security risks (including K&R) continues to be a coverage being considered at c-suite level in order to demonstrate duty of care to all employees globally.
• London markets have adapted coverages to include risks such as blackmail and stalking, especially crucial for high-net-worth individuals and families with a public profile.
• Coverage continues to be offered on a worldwide 24-hour basis, including when employees are in Israel/Gaza/Ukraine.
• Capacity levels remain high and Miller work closely with key markets as well as their response teams. Rates continue to be competitive – especially for long term agreement deals. 

• The market has seen significant softening throughout the first few months of 2024.
• There is still significant appetite from our Lloyd’s markets for this class and Miller are continuing to achieve a lot of success.
• There is plenty of capacity available in Lloyd’s, both through Miller exclusive facilities and in the open market.
• Lloyd’s continues to be the “go to” market for non-standard and harder to place opportunities seeking bespoke solutions.
• Canadian domestic market rating has increased to create a convergence with London pricing and an increasing flow of business is coming back to Lloyd’s which is not as sensitive to US exposures. We can deploy high limits very quickly.

• Despite early signs of stability, the rates within the US property market have softened significantly during the course of 2024 with double digit rate reductions easily achieved (subject to loss record).
• Although there is a continued pressure on rates, underwriting discipline remains strong with focus still on deductibles, valuations and overall terms and conditions in order to reduce volatility to their books.
• London has seen a significant growth in property capacity both in terms of new entrants, new side-car facilities within existing syndicates and algorithmic capacity allowing London to take a far larger share of the overall programme rather than simply be limited to the lower, more compressed layers.
• The awareness of London’s growth ambitions has become widely known in the US which further increases the flow of business enquires into the London market.
• As always in a softening market there can, on occasions, be a disconnect between rates offered on renewals compared to what can be achieved on new business which has resulted in a significant movement of accounts between brokers and further boosting new business enquiries into the London market.
• All eyes are on the 2024 hurricane season. A benign wind season will see a continued softening of terms, however if any major hurricanes make landfall causing significant damage, then the return of a hardening market remains a distinct possibility.

The following update is based on a meta study, carried out in July 2024.

Property Reinsurance Market

• Price Movement: The property reinsurance market continued to stabilize in the first half of 2024, with price movements remaining moderate. For non-loss impacted programs, increases ranged from flat to low single-digit percentages, while loss-impacted programs experienced slightly higher rate hikes.
• Capacity: Capacity deployment remained robust, building on the positive trend seen at the beginning of the year. The market saw sustained availability and deployment of capital, driven by rebounding capital in the sector and solid reinsurer returns.
• Notable Losses: The market is contending with losses from the Gulf floods and the early landfall of Hurricane Beryl, the first Category 5 storm of the season, marking the onset of what is expected to be a record active hurricane season.

Retrocession Market

• The retrocession market saw improved conditions for buyers, particularly in the middle to upper layers, with rates generally stable to slightly down. Increased capacity, bolstered by the presence of cat bonds and alternative capital, contributed to a more favourable environment.

Casualty Reinsurance Market

• The casualty reinsurance market maintained adequate capacity with timely renewals, not without pressure in pockets. Pro rata ceding commissions faced downward pressure, and excess-of-loss pricing showed moderate increases. Differentiation based on client relationships and portfolio performance remained a key theme.

Other Themes

• Investor Sentiment and New Capital: Investor sentiment showed cautious optimism, influenced by concerns over climate change, geopolitics, and inflation. Despite these challenges, the sector experienced capital growth, primarily through retained earnings and increased inflows into the cat bond market.
• Use of Alternative Capital: The use of Insurance-Linked Securities (ILS) and cat bonds grew, with alternative capital surpassing USD 100bn. This trend underscores the market's evolving approach to risk management and capital deployment.
• Shift in Reinsurer Appetite: A noticeable shift in reinsurer appetite was observed, particularly in the upper end of catastrophe programs, reflecting increased confidence and a strategic adjustment in market dynamics.
• Structured Solutions and Coverage Innovations: Demand for structured solutions, such as quota shares and multi-year covers, increased, highlighting a trend towards more innovative and tailored risk management approaches.
• Political and Geopolitical Influences: Political and geopolitical risks continued to influence the underwriting landscape, especially pronounced in Specialty lines, with tensions and conflicts in specific regions impacting market sentiment and decisions.
• Overall, the reinsurance market in the first half of 2024 demonstrated resilience and adaptability amidst evolving challenges, setting a positive tone for the remainder of the year.

• Property: Insurers are more selective on new risks and in some cases reducing capacity at renewal. Capacity continues to be a challenge on heavier non-target trades. Detailed submissions with adequate COPE information is key to securing best terms. Cladding and non-standard use premises pose additional complications when placing risks.
• Employers’ liability/general liability: Inflationary rate increases are being requested at renewal, although expiring terms are achievable on well running risks. There is strong appetite amongst insurers to write well managed risks.
• Motor (Auto): Insurers are applying inflationary increases to cover increased claims costs, although there are still savings to be made on well running risks. Appetite to write new business remains strong as (private car) fleet sizes continue to reduce. The electric vehicle (EV’s) market is evolving, but due to the higher propensity for total losses, insurers are limiting their exposures, when underwriting larger fleet risks. The increase in theft of high value, ‘keyless’ vehicles, is resulting in more onerous terms.
• Personal accident & travel: There is strong appetite amongst insurers to write new risks and renewal terms are competitive. There have been several new entrants further increasing capacity.

• Rates remain stable with aggressive pricing on risks quoted on a retroactive date inception basis.
• Capacity has been the hot topic over the past 12 months with the trend from umbrella carriers to reduce limits for this line of business. Due to this, we have witnessed a huge increase in demand for coverage in the last 12 months and Miller remains well placed for this with two London-only security exclusive facilities.
• Appetite remains broad; however, all risks are considered on a risk-by-risk basis with a focus on loss prevention efforts.
• The market is not currently looking at risks with foster care/adoption services (unless excess USD6m) and massage exposure. Furthermore, appetite for religious risks is minimal with success only really seen on larger placements.
• Pricing starts at roughly USD5,000 for a USD1m. Total capacity available for standalone molestation liability is limited with a total of USD10m to USD15m, depending on the risk. The market can sit excess of domestic carriers and domestic packages (although form review will be essential to get comfortable).
• Reinsurance options available to programs with significant potential catastrophic exposure.

• The sports disability market has continued to be stable in 2024 so far.
• In general, market appetite remains high although it does vary between different sports.
• We have seen some additional capacity coming into the market from existing and new insurers. This allows larger limits to be placed to the benefit of our clients.
• This additional capacity is yet to result in any significant reduction in pricing; however, it has allowed for minimal rate increases or flat renewals.

• Pricing for US terrorism risks is still very competitive and is consistently able to beat TRIA allocations, particularly for CAT exposed business and those with sub-standard occupancies.
• There is strong appetite from underwriters who wish to compete with domestic standalone terrorism carriers.
• Lender requirements for non-certified terrorism coverage are increasing, making the standalone terrorism market the go-to route to meet this need.
• With over 50% of the world’s democracies going to election polls this year, civil unrest and violence is predicted to increase. Therefore, we are seeing heightened volumes of Strikes, Riots and Civil Commotion (SRCC) submissions. All risk markets are looking to impose SRCC exclusions on certain risks, and our market is here to provide a standalone solution for this coverage.