Global insurance and reinsurance broker, Willis Towers Watson (WTW), has revealed that overall placements in the international market via its Global Markets Hub have increased by 67% year-on-year, reaching $525 million in premium.
This growth has occurred despite the unexpected business conditions created by the global COVID-19 pandemic.
One of the key points which WTW highlights surrounds embracing technology, as a large proportion of the market has had to adapt to remote working as well as the use of electronic placing platforms such as PPL.
It claims that the collaboration between brokers and underwriters means that month end binding has become more efficient.
Equally, markets have, for the most part, remained pragmatic in the face of COVID-19 claim notifications, recognising that client stakeholders may expect notification to be made without coverage or quantum being established at this stage.
Another key point which the broker has pointed out is political and societal uncertainty, suggesting that insurers should start looking at their current coverage for Strike, Riots and Civil Commotion.
Since it has come under scrutiny from certain markets following the Black Lives Matter protests, it continues to be available within the property market. There have been some instances where the specialist market has provided a more competitive solution, notes WTW.
Additionally, firmer market conditions have enabled underwriters to follow through on their stated determination to eliminate “silent cyber,” says the firm. Cyber is now much more likely to be specifically excluded or affirmatively covered in many lines of insurance business.
Garret Gaughan, Head of Property & Casualty Global Markets Hub, commented: “Despite being what is undoubtedly the most unusual period of my career, the first half of 2020 has shown that the international market is able to step in at times of uncertainty. Whilst there has been upward pressure on pricing, we have been able to work with underwriters, in extraordinary circumstances, to continue to fill out placements and meet clients’ coverage needs, which is a testament to the strength of the market.
“However, the direction of travel does not look set to change anytime soon. This is being compounded by the predicted above normal hurricane season. Whilst the insured losses to date have been modest these continue to erode the premium base for many carriers and a more significant loss from future storms will only lead to a tougher marketplace.”
