Reinsurance News

2022 will likely be an underwriters market: Amwins

22nd April 2022 - Author: Katie Baker

According to specialty insurance wholesaler Amwins, it’s likely that it will continue to be an underwriter’s market with limited capacity, increased rate conditions, and little tolerance for sub-par controls through 2022 and likely beyond.

AMWINS“The best thing agents and brokers can do for their clients is to think like an underwriter and communicate the importance of mitigating risk with security controls,” the company noted.

The company explained that there are services available to insureds that provide guidance from cybersecurity professionals to help them implement proper controls to get the best terms possible in the marketplace.

Additionally, many carriers have pre-breach services available as a benefit to policy holders and taking advantage of this perk could make a difference in the next renewal.

Touch base with insureds mid-term to discuss their security posture and encourage them to start the renewal process early for the best opportunity to find the coverage they need.

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In regards to capacity and pricing, primary aggregate limits have shrunk from $10 million to $5 million or lower and there remains a dire need for new primary capacity for SMEs as more carriers have pulled back from that space in the past 18 months.

Even with several new entrants providing high excess, capacity for 2022 renewals of large towers is still very hard to come by as carriers are often decreasing their line on a particular risk by 50% affecting limits throughout the tower. As a result, we’re seeing towers invert rate.

The London market is facing the same extreme hardening market with many of the same trends, including a shift from writing primary to writing excess, extremely limited capacity for SME-related risks, and carriers no longer accepting risks with weak controls.

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