Domestic US casualty deployed capacity has increased to $950 million, up from $690 million in early 2020, according to new data released by WTW.
This, they say, is the result of legacy carriers recently utilising more of their available capacity on excess towers. The report finds that carriers are more inclined to deploy this additional capacity in multiple layers as opposed to a single tranche.
In general, the primary commercial liability marketplace remains stable, with workers compensation continuing to be the most favourable line of coverage for buyers.
Dramatic improvements have been seen in the umbrella and excess liability market; recent renewals have yielded the lowest quarterly rate increases since the onset of the hard market.
The report considers the potential impact of rising interest rates and inflation. They say that rising claim costs across the industry could outpace any investment income improvements resulting from increased interest rates.
Internationally, the market for US-based insureds remains “healthy and competitive”, and there is sufficient capacity to meet coverage needs.
Market players continue to differentiate through investments in capabilities, data and resources.