Weekly News Update – 26th April

Global commercial insurance rates rose 1% in Q1 of 2024 according to research from Marsh. They also reported that cyber insurance rates decreased by around 6%. Varying challenges are on the horizon for brokers, as discussed in an article by Insurance Times. Finally, a new UN-backed climate alliance has been formed, which is set to provide a ‘safe space’ for complementary climate action efforts within insurance.

Big Question: What are the biggest challenges set to hit brokers in H2 2024? (Source: Insurance Times)
Insurance Times has been talking to industry experts, including OneAdvent’s CEO Tim Quayle, who shares his thoughts on why brokers are going to face increasing pressure from both ends of the distribution chain.

Insurance pricing continues to moderate while rates decline in majority of regions, says Marsh (Source: Reinsurance News)
This has been “largely driven by a strengthening of the trend for decreases in financial and professional and cyber lines, as well as increasing competition among insurers in the global property market”.

Undercurrents: Still “gas in the tank” for fronting carriers to increase MGA participation (Source: Insurer TV)
Lexicon Associates’ William Pitt reflects on growth in the US MGA market. Despite MGAs facing challenges in relation to securing capacity and pressure from carriers looking for a higher return on the capacity, Pitt states “this a very robust and healthy market”.

Insurers group targeted by anti-ESG campaign is being replaced (Source: Bloomberg)
With the Net Zero Insurance Alliance being disbanded last year, a new group, the Forum for Insurance Transition to Net Zero, will include “a legal team that comprises experts on antitrust and competition law”, in response to lessons learnt from the NZIA.

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