In a new report from Alliant Insurance Services, the firm highlights how Environmental, Social and Governance (ESG) concerns are on the rise, which could potentially impact future insurer underwriting decisions for casualty lines of business.
The report also showed that capacity remains constrained for difficult risks, while at the same time, also reaming readily available for less complex risks.
Additionally Alliant noted that new insurer capacity continues to emerge across casualty.
Auto liability also continues to be limited, with primary limits also shrinking. The report stated that this is pushing clients to buy more expensive buffers or umbrella to drop down to working layers.
Elsewhere, Alliant stated that retention adjustment and umbrella/excess attachment points will continue to shift as insurers seek out profitable layers of the deployment of capacity.
Furthermore, the report also addressed how umbrella, and excess and market remains a challenge, with rate and growth in client being major price factors.
Alliant, concludes by noting that auto liability also remains unprofitable, while both inflation and jury verdict continue to remain high. Rate pressure is expected to continue in 2023.