2016 Marketplace Realities Spring Update
A complex commercial insurance market is slowing the pricing declines most buyers have enjoyed for several renewal cycles and raising the likelihood that companies will experience some price increases in various commercial lines of insurance, according to Willis Towers Watson’s 2016 Marketplace Realities Spring Update report. The report, a line-by-line review of major and specialty insurance markets, serves as a guide for North American insurance buyers preparing for upcoming insurance program renewals.
Overall, ample capacity in the global insurance marketplace continues to buoy market conditions. However, increased underwriting scrutiny combined with potential challenges stemming from the changing carrier landscape is driving movement in some lines of business.
Matt Keeping, Head of Broking for North America, Willis Towers Watson said, “At the macro level, the market remains stable and pricing is still considered soft, but we may be starting to see the bottom end of that softening. In property, for example, there’s only so much the marketplace can give back. And while we remain in a period thankfully free of huge mega-disasters, losses line by line have taken their toll on marketplace competition. Plus, with interest rates low, insurance companies remain under revenue pressure.”
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