Reinsurance News

Lloyd’s highlights accelerating casualty market trends in 2020 review

7th April 2021 - Author: Charlie Wood

According to the Lloyd’s yearly market report, the 2020 casualty treaty market saw a number of pre-existing trends accelerate as the market faced issues such as diminishing capacity, tightening policy coverage and significant price strengthening in distressed and high exposure accounts across most lines of business.

Lloyd'sUS Workers’ Compensation remained competitive, yet concerns remain around the impact of COVID-19 and in particular presumption laws being brought in some states of the US.

Lloyd’s says motor excess of loss business is continuing to perform below expectations, while the sought after relief from a winding back of the Ogden rate to -0.25% in 2019, which was maintained in 2020 (from the previous level of -0.75%), has not had as significant an impact as hoped.

The prior year movement was a release 2.3% (2019: strengthening of 1.7%). Despite 2020 being a year of relatively benign prior year claims experience for casualty reinsurance business, emerging trends such as social inflation are driving increased uncertainty on this line.

US casualty treaty business performed slightly better than expected, whereas non-US casualty was been in line with expectations. Personal accident excess of loss was broadly in line with expectations.

Looking ahead, Lloyd’s says it will be specifically and closely monitoring social inflation to develop better market understanding of the trend to ensure adequate and robust pricing and reserving in the market.

A tranche of that work is expected to explore how the trend might develop in future years and whether social inflationary trends can be anticipated.

Print Friendly, PDF & Email

Recent Reinsurance News

Getting your daily reinsurance news from Reinsurance News is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox.

  • Only email is mandatory, but the more you tell us about yourself the better we can serve you in future!
  • This field is for validation purposes and should be left unchanged.

By submitting the form you are giving your consent to be emailed by us.

Read previous post:
AXA XL names Khera as Head of Marine, UK & Lloyd’s and Global Head of Hull

AXA XL, the property & casualty and specialty risk division of AXA, has named Sundeep Khera as Head of Marine,...