The global (re)insurance market has since 2018/19 been in a state of transition, shifting from conditions favourable to buyers to those of sellers, with rate increases and capacity constraints a continuing theme across the overall commercial insurance market. Extreme weather events resulting in the (re)insurance market incurring USD 100 billion plus in natural catastrophe losses in 2017, followed by enduring low-interest rates, elevated reserving risk (from social inflation) and claims inflation across many lines of business (amongst other factors) impacting the profitability of the market.
Lloyds of London implemented its crackdown on unprofitable business in 2018, requiring various syndicates to implement a remediation plan to either improve the performance of the worst performing lines of business or to exit from that line entirely. As well as unprofitable lines, unprofitable industry segments were also exited or capacity significantly reduced. This has led to both increases in pricing and also restricted capacity in various areas. Particularly hard hit has been D & O, Professional Indemnity & Property.
Trends in the UK / EU Insurance Marketplace
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