Research

Insurance Marketplace Realities: International casualty

2018 Spring Update on Commercial Insurance in North America

April 12, 2018

Price prediction

  Trend Range
International casualty: Down –5% to –10%

Key takeaway

Regulatory and compliance remain key concerns for buyers in a highly competitive marketplace.

New marketplace entrants are still investing in global networks and adding international capacity, creating opportunities for premium savings.

Opportunities are prevalent for buyers with good loss experience who have not marketed their programs in the last few years

  • New entrants are driving aggressive pricing as they try to gain market share from well-entrenched international insurers.
  • Many of these new entrants do not have long-established networks, so caution should be exercised when looking at the aggressive pricing. Execution problems may outweigh marginal savings.
  • We are seeing greater flexibility, especially in local pricing structures.

External factors are affecting our multinational clients

  • Brexit negotiations continue to prompt insurers to establish continental European domiciles.
  • As compliance continues to be a focus, clients are reviewing the need for local policies for their global directors and officers as well as inland marine programs.
  • Stricter compliance requirements, cash before cover and other protectionist measures are on the rise.
  • Regulatory scrutiny, the Foreign Account Tax Compliance Act, the General Data Protection Regulation and susceptibility to increasing tax audits remain active concerns.