Insurance Market Update H1 2022

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Lockton Companies LLP Insurance Market Update H1 2022

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Alex Boswell Partner T +44 (0)20 7933 2897 E alex boswell lockton com

We are pleased to share our H1 2022 insurance market update

Photo taken in Bologna, Italy

This issue provides insights across 20 business segments and includes a spotlight feature on Greater China and the lo

However, for good risks, this will be tempered to more modest increments, or flat adjustments, as we see the competit

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Alex Boswell Partner T +44 (0)20 7933 2897 E alex boswell lockton com

We are pleased to share our H1 2022 insurance market update

Photo taken in Bologna, Italy

Insurance Market Update - H1 2022 Lockton Companies LLP

The escalation of the Russia-Ukraine conflict crisis is a major risk to both growth and asset prices, which alongside

Executive Summary

The last 6 months have seen a change in the insurance market operating environment We have experienced a prolonged p

Common recommendations across this publication include:

Executive Summary

The last 6 months have seen a change in the insurance market operating environment We have experienced a prolonged p

Consider use of higher primary limits, buffer layers front and reinsurance Consider efficacy of alternative risk str

Engage early and develop a flexible plan whilst creating competition in the current market conditions Meet with key

Insurance Market Update - H1 2022 Lockton Companies LLP

Gabriella Eltham Project Analyst International Practice Groups T +44 (0)20 7933 1320 E gabriella eltham lockton com

Global economy faces new challenges Experts had been warning about rising inflation, due to persisting supply chain d

Macro-economic insurance environment

However, then the Ukraine conflict broke out, exacerbating existing risks and creating new challenges for global grow

However, the Russia-Ukraine conflict that started on February 24, has cast significant uncertainty on an otherwise ro

Key points for clients to focus on Quality submissions a well-structured submission supported by detailed analysi

Gabriella Eltham Project Analyst International Practice Groups T +44 (0)20 7933 1320 E gabriella eltham lockton com

Global economy faces new challenges Experts had been warning about rising inflation, due to persisting supply chain d

Macro-economic insurance environment

EPS

world economic outlook update january 2022: growth projections

However, then the Ukraine conflict broke out, exacerbating existing risks and creating new challenges for global grow

However, the Russia-Ukraine conflict that started on February 24, has cast significant uncertainty on an otherwise ro

Insurance Market Update - H1 2022 Lockton Companies LLP

Many major central banks are expected to lift interest rates at least once this year, to try and control rising price

Similarly, many international insurers, reinsurers and brokers have left the market In addition to revenue losses, t

The London political violence (PV) market is facing a potential 85m ( 93m) loss from a wind farm in Ukraine, followi

Through mid-March, the IHS Markit Materials Price Index advanced 33% year to date, reaching a new high Energy prices

Source: Trading Economics

Crude Oil WTI (USD Bbl) 112 92 -2 01 (-1 75%)

Source: Financial Times

Inflation Inflation has hit its highest level in decades for many countries, with the Ukraine conflict adding upward

Data explorer: consumer price inflation

Annual % change in consumer price index

Many major central banks are expected to lift interest rates at least once this year, to try and control rising price

Similarly, many international insurers, reinsurers and brokers have left the market In addition to revenue losses, t

The London political violence (PV) market is facing a potential 85m ( 93m) loss from a wind farm in Ukraine, followi

Morning image with businesswoman and businessmen arriving at modern business district

Through mid-March, the IHS Markit Materials Price Index advanced 33% year to date, reaching a new high Energy prices

Rectangle

Source: Trading Economics

Crude Oil WTI (USD Bbl) 112 92 -2 01 (-1 75%)

Insurance Market Update - H1 2022 Lockton Companies LLP

Insurance Market Update - H1 2022 Lockton Companies LLP

Construction site on sunset background

More and more insurers are declaring that they are now in growth mode and that competition is slowly returning This

The cause is largely down to reinsurance treaty changes, following a period where reinsurers have sustained an increa

This directly increases the cost of claims, and it has been forecast that the inflationary increase will reach double

The delay in accessing goods can directly prolong the interruption caused to a business and therefore the loss Wheth

For further information, please contact: Jim McDowall Retail Property Broker E jim mcdowall lockton com

Jim McDowall Retail Property Broker

A few issues in the way of recovery Stability in the property insurance market has continued to build over the last s

Construction site on sunset background

More and more insurers are declaring that they are now in growth mode and that competition is slowly returning This

The cause is largely down to reinsurance treaty changes, following a period where reinsurers have sustained an increa

This directly increases the cost of claims, and it has been forecast that the inflationary increase will reach double

The delay in accessing goods can directly prolong the interruption caused to a business and therefore the loss Wheth

For further information, please contact: Jim McDowall Retail Property Broker E jim mcdowall lockton com

Jim McDowall Retail Property Broker

A few issues in the way of recovery Stability in the property insurance market has continued to build over the last s

Insurance Market Update - H1 2022 Lockton Companies LLP

In the United States alone, extreme weather events in 2021 included Texas Winter Storm Uri and extensive flooding in

Insured losses from natural catastrophes in 2021 reached USD 105 billion, the fourth highest since 1970, according to

Source: Swiss Re

,2021,2020,Annual change,Previous 10-year average,Economic losses (total) ,259,216,20%,229,Nat cat,250,202,24%,216,Ma

Catastrophe risk modeller AIR Worldwide estimated that the global insurance industry should currently expect a long-r

2 North American property

Simon Scholfield Partner Head of Wholesale P&C

Insurers look to address catastrophe risk volatility With climate change seemingly accelerating, the frequency and se

Insured losses from natural catastrophes in 2021 reached USD 105 billion, the fourth highest since 1970, according to

Source: Swiss Re

,2021,2020,Annual change,Previous 10-year average,Economic losses (total) ,259,216,20%,229,Nat cat,250,202,24%,216,Ma

Catastrophe risk modeller AIR Worldwide estimated that the global insurance industry should currently expect a long-r

2 North American property

Simon Scholfield Partner Head of Wholesale P&C

Insurers look to address catastrophe risk volatility With climate change seemingly accelerating, the frequency and se

Insurance Market Update - H1 2022 Lockton Companies LLP

As a result, buyers are becoming increasingly interested in exploring alternative protection mechanisms which include

On the risk side, rapidly escalating inflation, coupled with post-pandemic supply chain issues and now war in eastern

For further information, please contact: Simon Scholfield Partner Head of Wholesale P&C E simon scholfield lockton com

As a result, buyers are becoming increasingly interested in exploring alternative protection mechanisms which include

On the risk side, rapidly escalating inflation, coupled with post-pandemic supply chain issues and now war in eastern

For further information, please contact: Simon Scholfield Partner Head of Wholesale P&C E simon scholfield lockton com

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Polygon

Insurance Market Update - H1 2022 Lockton Companies LLP

Experts attribute many of these events directly to climate change and expect them to increase in frequency and severi

Market capacity While IQUW ( 406m stamp capacity) entered the market recently, capacity is mainly driven by strong in

Despite heavy catastrophe losses in 2021, insurable limits of over 2bn are still available to buyers, especially to

offerings and could often be heavily oversubscribed This is especially the case with primary and high excess layers

3 INTERNATIONAL PROPERTY

Roland Haiser Partner Wholesale Property and Casualty

Global (re)insurance rates show signs of plateauing Despite the increasingly uncertain outlook due to the conflict in

(Re)insurance rates continue to increase but momentum for direct and facultative (D&F) property has started to slow a

Inflationary pressure and catastrophe costs could apply a break to further price easing, although continued competiti

Cumulative rate change since 2015

Source: Beazley

Experts attribute many of these events directly to climate change and expect them to increase in frequency and severi

Market capacity While IQUW ( 406m stamp capacity) entered the market recently, capacity is mainly driven by strong in

Despite heavy catastrophe losses in 2021, insurable limits of over 2bn are still available to buyers, especially to

offerings and could often be heavily oversubscribed This is especially the case with primary and high excess layers

Source: Swiss Re Institute

INSURED LOSSES SINCE 1970

3 INTERNATIONAL PROPERTY

Roland Haiser Partner Wholesale Property and Casualty

Global (re)insurance rates show signs of plateauing Despite the increasingly uncertain outlook due to the conflict in

(Re)insurance rates continue to increase but momentum for direct and facultative (D&F) property has started to slow a

Inflationary pressure and catastrophe costs could apply a break to further price easing, although continued competiti

Insurance Market Update - H1 2022 Lockton Companies LLP

Digital generated image of cityscape data

This will often result in a lower combined quota share limit, or a more complicated structured approach to both domes

All things being equal, we believe that modest rate increases or flat adjustments will become the norm in 2022, due t

Coverage considerations Although broad policy forms are still readily available, terms and conditions continue to t

Recommendations It is essential to engage early and create competition in the current market conditions Differentiat

For further information, please contact: Roland Haiser Partner E roland haiser lockton com

Digital generated image of cityscape data

This will often result in a lower combined quota share limit, or a more complicated structured approach to both domes

All things being equal, we believe that modest rate increases or flat adjustments will become the norm in 2022, due t

Coverage considerations Although broad policy forms are still readily available, terms and conditions continue to t

Recommendations It is essential to engage early and create competition in the current market conditions Differentiat

For further information, please contact: Roland Haiser Partner E roland haiser lockton com

Insurance Market Update - H1 2022 Lockton Companies LLP

This upward looking view from Sixth Avenue in midtown Manhattan looks up at the Bank of America Tower Also seen here is the Salesforce Building with the spotlights on the roof Sixth Avenue in midtown is lined with tall office buildings and close proximity to Bryant Park, Times Square, Rockefeller Center and Central Park

Insurers are focusing on inflation, the impact of years of soft market and the litigious US landscape, to counteract

we may begin to face challenges: Climate change: The Lloyd s Market Association (LMA) has released an exclusion whi

This forever chemical is a debated topic in the US market and we may start to see proposed restrictions impacting p

Nevertheless, insurers remain concerned about changes in legislation, the rising cost of inflation, increased life ex

Sara Baker Retail Casualty Broker

Insurers worry about inflation and US litigation As we navigate through 2022, underwriters continue to encourage a p

This upward looking view from Sixth Avenue in midtown Manhattan looks up at the Bank of America Tower Also seen here is the Salesforce Building with the spotlights on the roof Sixth Avenue in midtown is lined with tall office buildings and close proximity to Bryant Park, Times Square, Rockefeller Center and Central Park

Insurers are focusing on inflation, the impact of years of soft market and the litigious US landscape, to counteract

we may begin to face challenges: Climate change: The Lloyd s Market Association (LMA) has released an exclusion whi

This forever chemical is a debated topic in the US market and we may start to see proposed restrictions impacting p

Nevertheless, insurers remain concerned about changes in legislation, the rising cost of inflation, increased life ex

Sara Baker Retail Casualty Broker

Insurers worry about inflation and US litigation As we navigate through 2022, underwriters continue to encourage a p

Insurance Market Update - H1 2022 Lockton Companies LLP

Earth (focus on Europe) represented by little dots, binary code and lines - big data, global business, cryptocurrency 3D render

As we continue to face the challenges of rate correction, advanced planning for renewals is essential The enhance

For further information, please contact: Sara Baker Retail Casualty Broker E sara baker lockton com

As rates continue to increase for US domiciled business, pressure on global programmes where risks have significant U

* The XOL increases have been driven by a number of risks whereby significant rate correction of +150 200% was requir

2021 UK Casualty Positive Liability Rate Change

Earth (focus on Europe) represented by little dots, binary code and lines - big data, global business, cryptocurrency 3D render

As we continue to face the challenges of rate correction, advanced planning for renewals is essential The enhance

For further information, please contact: Sara Baker Retail Casualty Broker E sara baker lockton com

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Polygon

As rates continue to increase for US domiciled business, pressure on global programmes where risks have significant U

* The XOL increases have been driven by a number of risks whereby significant rate correction of +150 200% was requir

2021 UK Casualty Positive Liability Rate Change

Insurance Market Update - H1 2022 Lockton Companies LLP

After significant cutting back of capacity, coupled with immense pressure on rate in 2020, 2021 had a less dramatic c

For clients that have suffered big price increases in the past couple of years, the chance to claw some of that premi

We are unlikely to know the true increases in verdicts, given that case resolution times have been significantly disr

Work with l new capacity providers to develop relationships for the future should incumbent positions change Prov

Quality information, client visibility and early engagement remain critical to obtain the optimum outcome at renewal

For further information, please contact: Kate Ruddell US Casualty Broker E kate ruddell lockton com

Kate Ruddell US Casualty Broker Property and Casualty - Wholesale

Insurers shun rate reductions The US Casualty insurance marketplace is experiencing a moderation of rate increases, a

After significant cutting back of capacity, coupled with immense pressure on rate in 2020, 2021 had a less dramatic c

For clients that have suffered big price increases in the past couple of years, the chance to claw some of that premi

We are unlikely to know the true increases in verdicts, given that case resolution times have been significantly disr

Work with l new capacity providers to develop relationships for the future should incumbent positions change Prov

Quality information, client visibility and early engagement remain critical to obtain the optimum outcome at renewal

For further information, please contact: Kate Ruddell US Casualty Broker E kate ruddell lockton com

Polygon

Polygon

Kate Ruddell US Casualty Broker Property and Casualty - Wholesale

Insurers shun rate reductions The US Casualty insurance marketplace is experiencing a moderation of rate increases, a

Insurance Market Update - H1 2022 Lockton Companies LLP

This has spread globally and while rate increases are starting to flatten, many Lloyd s insurers have income restrict

As with casualty reinsurance, there has been a growing focus on social inflation This was highlighted in 2021 and wi

This focus on social inflation has been particularly prevalent in the sexual abuse and molestation coverage, which is

In preparation for renewals, it is important to have a clear strategy and structure for the placement Concise inform

For further information, please contact: Liam Kent Senior Vice President Property and Casualty - Wholesale E liam ke

6 INTERNATIONAL casualty

Liam Kent Senior Vice President Property and Casualty - Wholesale

Rate hardening slows down as market results improve A trend in the Lloyd s market saw clients in the casualty market

This has spread globally and while rate increases are starting to flatten, many Lloyd s insurers have income restrict

As with casualty reinsurance, there has been a growing focus on social inflation This was highlighted in 2021 and wi

This focus on social inflation has been particularly prevalent in the sexual abuse and molestation coverage, which is

In preparation for renewals, it is important to have a clear strategy and structure for the placement Concise inform

For further information, please contact: Liam Kent Senior Vice President Property and Casualty - Wholesale E liam ke

Polygon

Polygon

6 INTERNATIONAL casualty

Liam Kent Senior Vice President Property and Casualty - Wholesale

Rate hardening slows down as market results improve A trend in the Lloyd s market saw clients in the casualty market

Insurance Market Update - H1 2022 Lockton Companies LLP

Insurers are looking to expand capacity for product recall protection, as they consider the area attractive from a pr

discussions around the Chevy Bolt recall, given the 2bn settlement in October 2021 and the consequent exposure to mu

The risks surrounding ingredients are now better understood and covered by insurers, albeit at higher premiums than t

Growing demand Risks around component parts going into both consumer end products and industrial goods are among the

For further information, please contact: Ian Harrison Partner Global Head of Product Recall Practice Group E ian har

7 PRODUCT RECALL

Ian Harrison Partner Global Head of Recall Practice Group

Product recall insurance market benefits from price competition The recall market saw a steady 2021 and the signs of

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Insurers are looking to expand capacity for product recall protection, as they consider the area attractive from a pr

discussions around the Chevy Bolt recall, given the 2bn settlement in October 2021 and the consequent exposure to mu

The risks surrounding ingredients are now better understood and covered by insurers, albeit at higher premiums than t

Growing demand Risks around component parts going into both consumer end products and industrial goods are among the

For further information, please contact: Ian Harrison Partner Global Head of Product Recall Practice Group E ian har

Polygon

Polygon

7 PRODUCT RECALL

Ian Harrison Partner Global Head of Recall Practice Group

Product recall insurance market benefits from price competition The recall market saw a steady 2021 and the signs of

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Insurance Market Update - H1 2022 Lockton Companies LLP

In doing so, they are raising the floor for minimum controls for businesses, and seeking greater assurances around cy

include strong minimum protocols such as Multi Factor Authentication (MFA) for remote desktop protocol, robust backup

by underwriting their renewal book Consequently, insurer appetite for new business tends to be limited to those comp

Doing so allows your broker to prepare the insurers, whilst giving time for the inevitable back and forth owing to qu

For further information, please contact: Vanessa Cathie Vice President Cyber and Technology E vanessa cathie lockton

Vanessa Cathie Vice President Cyber and Technology

Cyber claims trend attracts underwriters scrutiny Following an increase in the volume and average cost of claims,

include strong minimum protocols such as Multi Factor Authentication (MFA) for remote desktop protocol, robust backup

by underwriting their renewal book Consequently, insurer appetite for new business tends to be limited to those comp

Doing so allows your broker to prepare the insurers, whilst giving time for the inevitable back and forth owing to qu

For further information, please contact: Vanessa Cathie Vice President Cyber and Technology E vanessa cathie lockton

Polygon

Polygon

Vanessa Cathie Vice President Cyber and Technology

Cyber claims trend attracts underwriters scrutiny Following an increase in the volume and average cost of claims,

Insurance Market Update - H1 2022 Lockton Companies LLP

9 Professional indemnity

Marc Rowson Senior Vice President

Professional indemnity insurance conditions set to improve Spotlight on law firms in England and Wales

There are clear green shoots of recovery for segments of the legal profession and professional indemnity insurance (P

Current environment As we now enter the spring of 2022, a significant number (estimated 1,500) of legal practices are

Outlook These are all indications of reasons to be positive for legal practices That said, there does remain reason

In summary, there are clear green shoots of recovery for segments of the legal profession and PII may soon become a l

For further information, please contact: Marc Rowson Senior Vice President E mark rowson lockton com

9 Professional indemnity

Marc Rowson Senior Vice President

Professional indemnity insurance conditions set to improve Spotlight on law firms in England and Wales

Current environment As we now enter the spring of 2022, a significant number (estimated 1,500) of legal practices are

Outlook These are all indications of reasons to be positive for legal practices That said, there does remain reason

In summary, there are clear green shoots of recovery for segments of the legal profession and PII may soon become a l

For further information, please contact: Marc Rowson Senior Vice President E mark rowson lockton com

Polygon

Polygon

Insurance Market Update - H1 2022 Lockton Companies LLP

The background It took D&O insurers a few years to bring rates to a level that looked adequate in relation to claims

Juggling priorities For brokers and clients, renewals are no longer about problem management, but about balancing lon

Modern office with empty poster on wall and city view Mock up, 3D Rendering

10 D&O INDEMNITY

Michael Lea Partner Global Professional and Financial Risks

Dealing with a split D&O market Rising premiums for directors and officers (D&O) liability insurance in 2020 and 20

The background It took D&O insurers a few years to bring rates to a level that looked adequate in relation to claims

Juggling priorities For brokers and clients, renewals are no longer about problem management, but about balancing lon

Modern office with empty poster on wall and city view Mock up, 3D Rendering

10 D&O INDEMNITY

Michael Lea Partner Global Professional and Financial Risks

Dealing with a split D&O market Rising premiums for directors and officers (D&O) liability insurance in 2020 and 20

Insurance Market Update - H1 2022 Lockton Companies LLP

Group of coworkers in discussion in glass walled office conference room businesswoman working on digital table

employment practices and similar emerging areas of directors risk In preparing well for these questions, policyhold

Outlook The London market is almost back to the levels of capacity available for large D&O programmes before 2019 wit

For further information, please contact: Michael Lea Partner Global Professional and Financial Risks E michael lea l

Group of coworkers in discussion in glass walled office conference room businesswoman working on digital table

employment practices and similar emerging areas of directors risk In preparing well for these questions, policyhold

Outlook The London market is almost back to the levels of capacity available for large D&O programmes before 2019 wit

For further information, please contact: Michael Lea Partner Global Professional and Financial Risks E michael lea l

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Polygon

Insurance Market Update - H1 2022 Lockton Companies LLP

Challenges Refurbishment remodelling projects: significant reduction in appetite from the market, due to the complexi

Cross-laminated timber hybrid timber frame construction: pressure from environmental, social and governance (ESG) c

11 CONSTRUCTION

Lewis Coward Head of Placement Construction

Construction insurance market begins to stabilise While the construction insurance market is still seeing a gradual h

Challenges Refurbishment remodelling projects: significant reduction in appetite from the market, due to the complexi

Cross-laminated timber hybrid timber frame construction: pressure from environmental, social and governance (ESG) c

11 CONSTRUCTION

Lewis Coward Head of Placement Construction

Construction insurance market begins to stabilise While the construction insurance market is still seeing a gradual h

Insurance Market Update - H1 2022 Lockton Companies LLP

Working in conjunction with our US colleagues, this has presented an opportunity for Lockton and London-based insurer

Outlook With all these challenges, it is key to pre-empt insurer questions, provide comprehensive information from th

For further information, please contact: Lewis Coward Head of Placement Construction E lewis coward lockton com

aerial view construction site in xiong'an new area

Working in conjunction with our US colleagues, this has presented an opportunity for Lockton and London-based insurer

Outlook With all these challenges, it is key to pre-empt insurer questions, provide comprehensive information from th

For further information, please contact: Lewis Coward Head of Placement Construction E lewis coward lockton com

Polygon

Polygon

aerial view construction site in xiong'an new area

Insurance Market Update - H1 2022 Lockton Companies LLP

available capacity, alongside insurers seeking to achieve premium rate strength and prohibitive amendments to policy

There have been new entrants into the real estate insurance market, as well as additional capacity from established i

Insuring residential property and heavy industrial assets remains challenging, with only a small selection of insurer

We are working with all our partner insurers to influence their views and positively change the landscape External f

We expect that the rate of change will not be as aggressive as when the hardened market came into effect, as we remai

For further information, please contact: Rob Hunter Senior Vice President Global Real Estate and Construction E rob

Rob Hunter Senior Vice President Global Real Estate and Construction

Early signs of stability While the real estate insurance market remains in a hardened phase, there are positive devel

Aerial view of Hong Kong City

available capacity, alongside insurers seeking to achieve premium rate strength and prohibitive amendments to policy

There have been new entrants into the real estate insurance market, as well as additional capacity from established i

Insuring residential property and heavy industrial assets remains challenging, with only a small selection of insurer

We are working with all our partner insurers to influence their views and positively change the landscape External f

We expect that the rate of change will not be as aggressive as when the hardened market came into effect, as we remai

For further information, please contact: Rob Hunter Senior Vice President Global Real Estate and Construction E rob

Polygon

Polygon

Rob Hunter Senior Vice President Global Real Estate and Construction

Early signs of stability While the real estate insurance market remains in a hardened phase, there are positive devel

Insurance Market Update - H1 2022 Lockton Companies LLP

Crowd watching a band perform at summer music festival, UK

It has been widely reported that the contingency market has suffered heavy losses as a result of cancellations, postp

Clients that are involved with any event are therefore asked by underwriters for more detailed information about the

Following the conflict in Ukraine, the current geopolitical situation has also raised a few concerns from a contingen

For further information, please contact: Andy Thompson Senior Vice President Accident, Health, Sports and Contingency

Andy Thompson Senior Vice President Accident, Health, Sports and Contingency

Optimism returns after the lifting of pandemic-related restrictions Following the easing of restrictions worldwide, t

Crowd watching a band perform at summer music festival, UK

It has been widely reported that the contingency market has suffered heavy losses as a result of cancellations, postp

Clients that are involved with any event are therefore asked by underwriters for more detailed information about the

Following the conflict in Ukraine, the current geopolitical situation has also raised a few concerns from a contingen

For further information, please contact: Andy Thompson Senior Vice President Accident, Health, Sports and Contingency

Polygon

Polygon

Andy Thompson Senior Vice President Accident, Health, Sports and Contingency

Optimism returns after the lifting of pandemic-related restrictions Following the easing of restrictions worldwide, t

Insurance Market Update - H1 2022 Lockton Companies LLP

However, underwriters are closely watching inflation and claims trends, and the Ukraine conflict has brought marine w

re-allocating capacity and investments to business areas with higher margins There are some concerns about the fallo

Asia, another major market for hull business, remains extremely competitive and is, in some cases, offering reduction

14 Marine Hull and machinery

David Ripton Head of Marine and Cargo

Market hardening peaking despite inflation, claims concerns Following years of portfolio and price adjustments, the h

However, underwriters are closely watching inflation and claims trends, and the Ukraine conflict has brought marine w

re-allocating capacity and investments to business areas with higher margins There are some concerns about the fallo

Asia, another major market for hull business, remains extremely competitive and is, in some cases, offering reduction

14 Marine Hull and machinery

David Ripton Head of Marine and Cargo

Market hardening peaking despite inflation, claims concerns Following years of portfolio and price adjustments, the h

Insurance Market Update - H1 2022 Lockton Companies LLP

A limited number of insurers are now looking to insert a carte blanche Russian exclusion clause independent of the

Things to consider The fact that many underwriters are working from home two days a week slows the general pace of

For further information, please contact: David Ripton Head of Marine and Cargo E david ripton lockton com

Whilst there is competitive pricing tension and the market rate rises are starting to slow down, the underwriting d

Container ship mooring in Havre Port France

A limited number of insurers are now looking to insert a carte blanche Russian exclusion clause independent of the

Things to consider The fact that many underwriters are working from home two days a week slows the general pace of

For further information, please contact: David Ripton Head of Marine and Cargo E david ripton lockton com

Polygon

Polygon

Whilst there is competitive pricing tension and the market rate rises are starting to slow down, the underwriting d

Insurance Market Update - H1 2022 Lockton Companies LLP

Containers in the port of Laem Chabang in Thailand

the impact of inflation, and the expectation of more frequent severe weather events on renewals Despite recent posit

Market movements Lloyd s has seen several syndicates cease underwriting certain marine lines Light touch syndi

The reduced capacity in the marine liability market is still generally adequate and there is cautious competition for

15 Marine port & terminal

Benefitting from emerging competition While insurers are eager to enhance the profitability of their portfolios, we

David Ripton Head of Marine and Cargo

Containers in the port of Laem Chabang in Thailand

the impact of inflation, and the expectation of more frequent severe weather events on renewals Despite recent posit

Market movements Lloyd s has seen several syndicates cease underwriting certain marine lines Light touch syndi

The reduced capacity in the marine liability market is still generally adequate and there is cautious competition for

15 Marine port & terminal

Benefitting from emerging competition While insurers are eager to enhance the profitability of their portfolios, we

David Ripton Head of Marine and Cargo

Insurance Market Update - H1 2022 Lockton Companies LLP

Marine property Accounts that were re-rated in 2020 21 will be treated more leniently in 2022 Those accounts wit

Recommendations: Extend the renewal timeline cycle to at least three months ahead of renewal Engage incumbent in

For further information, please contact: David Ripton Head of Marine and Cargo E david ripton lockton com

Container ship in the harbor in Asia ,

Container ship in the harbor in Asia ,

Marine property Accounts that were re-rated in 2020 21 will be treated more leniently in 2022 Those accounts wit

Recommendations: Extend the renewal timeline cycle to at least three months ahead of renewal Engage incumbent in

For further information, please contact: David Ripton Head of Marine and Cargo E david ripton lockton com

Polygon

Polygon

Container ship in the harbor in Asia ,

Container ship in the harbor in Asia ,

Insurance Market Update - H1 2022 Lockton Companies LLP

Rate increases as a result of the reduced operational fleets, coupled with minimum premiums, had largely been introdu

Tim Liddiard Senior Vice President

Aviation market challenge reaches new heights The aviation insurance market was just recovering from the disruption c

A barometer for aviation insurers has always been the relative health of the airline industry, which dominates the ac

Passenger confidence has been affected, due to pandemic-related restrictions In addition, a slower than forecast ret

Year-on-year change of weekly flight frequency of global airlines

Source: Statista

Rate increases as a result of the reduced operational fleets, coupled with minimum premiums, had largely been introdu

Large-scale inspection of all aircraft systems in the aircraft hangar by worker mechanics and other specialists Bright light outside the garage door

Tim Liddiard Senior Vice President

Aviation market challenge reaches new heights The aviation insurance market was just recovering from the disruption c

A barometer for aviation insurers has always been the relative health of the airline industry, which dominates the ac

Passenger confidence has been affected, due to pandemic-related restrictions In addition, a slower than forecast ret

Insurance Market Update - H1 2022 Lockton Companies LLP

Where capacity for many had been reduced in 2020, the trend had now turned to insurers either maintaining or deployin

The industry is bracing itself for the potential of claims the like of which have never been experienced before Russ

For further information, please contact: Tim Liddiard Senior Vice President E tim liddiard lockton com

Where capacity for many had been reduced in 2020, the trend had now turned to insurers either maintaining or deployin

The industry is bracing itself for the potential of claims the like of which have never been experienced before Russ

For further information, please contact: Tim Liddiard Senior Vice President E tim liddiard lockton com

Polygon

Polygon

Insurance Market Update - H1 2022 Lockton Companies LLP

Aerial view of colorful freight trains at sunset Cargo wagons with goods on railway station Railroad Heavy industry Industrial landscape with railway platform Top view from drone of depot Urban

The more recent entrants to the cargo market include Arch, HCC, HDI, IQUW, Navium, Ocean Underwriting, Rokstone, and

The significant market capacity available will ensure that buyers have options as competition provides favourable pri

For further information, please contact: Peter Hall Partner Head of Cargo & Logistics E peter hall lockton com

Peter Hall Partner Head of Cargo & Logistics

Cargo market attracts fresh capacity As 2022 evolves, the London cargo market remains buoyant Following significant

Aerial view of colorful freight trains at sunset Cargo wagons with goods on railway station Railroad Heavy industry Industrial landscape with railway platform Top view from drone of depot Urban

The more recent entrants to the cargo market include Arch, HCC, HDI, IQUW, Navium, Ocean Underwriting, Rokstone, and

The significant market capacity available will ensure that buyers have options as competition provides favourable pri

For further information, please contact: Peter Hall Partner Head of Cargo & Logistics E peter hall lockton com

Polygon

Polygon

Peter Hall Partner Head of Cargo & Logistics

Cargo market attracts fresh capacity As 2022 evolves, the London cargo market remains buoyant Following significant

Insurance Market Update - H1 2022 Lockton Companies LLP

The countries of Ukraine and Russia combined may account for less than 2% of the world s GDP but they also produce 70

This appetite is being driven by a desire for many insurers to diversify their books away from CR & CF However, wher

18 Political and trade credit

Charles Purvis Political & Credit Risks

The conflict in Ukraine impacts the global economy Beyond the obvious humanitarian issues, the crisis in Ukraine ha

The countries of Ukraine and Russia combined may account for less than 2% of the world s GDP but they also produce 70

This appetite is being driven by a desire for many insurers to diversify their books away from CR & CF However, wher

18 Political and trade credit

Charles Purvis Political & Credit Risks

The conflict in Ukraine impacts the global economy Beyond the obvious humanitarian issues, the crisis in Ukraine ha

Insurance Market Update - H1 2022 Lockton Companies LLP

Group of business persons having a meeting in a closed glass conference room

In order to consider writing a weaker transaction (i e approximately single B rated in the case of credit risks) i

Where CPRI adds value As commodity prices continue to increase, insurance can be used to leverage a firm s internal c

For further information, please contact: Charles Purvis Political & Credit Risks E charles purvis lockton com

Group of business persons having a meeting in a closed glass conference room

In order to consider writing a weaker transaction (i e approximately single B rated in the case of credit risks) i

Where CPRI adds value As commodity prices continue to increase, insurance can be used to leverage a firm s internal c

For further information, please contact: Charles Purvis Political & Credit Risks E charles purvis lockton com

Polygon

Polygon

Insurance Market Update - H1 2022 Lockton Companies LLP

19 Global Energy

Alex Irvin Vice President Lockton Global Energy & Power

Sam Northcote-Green Vice President Renewable Energy

Power sector insurance rate increases decelerate Market conditions are becoming more favourable for insurance buyer

Trend towards renewable energy There has been a growing number of insurance carriers moving into renewable energy in

For further information, please contact: Alex Irvin Vice President Lockton Global Energy & Power E alex irvin lockto

19 Global Energy

Alex Irvin Vice President Lockton Global Energy & Power

Sam Northcote-Green Vice President Renewable Energy

Power sector insurance rate increases decelerate Market conditions are becoming more favourable for insurance buyer

Trend towards renewable energy There has been a growing number of insurance carriers moving into renewable energy in

For further information, please contact: Alex Irvin Vice President Lockton Global Energy & Power E alex irvin lockto

Furture alternative electricity source:windmill and solar energy-----concept of sustainable resources on a sunny day, Jiangsu,China

Insurance Market Update - H1 2022 Lockton Companies LLP

However, by operating as a single team, Lockton successfully creates visibility across the different markets Mainla

Shift to global risks With China becoming a member of the World Trade Organization (WTO) and implementing the Belt an

China World Trade Center

20 Spotlight on Greater China

Carly Kwan Senior Vice President - Greater China Corporate PEC

Overview of the main insurance trends Greater China (China, Hong Kong, Macau and Taiwan) comprises a diverse social,

However, by operating as a single team, Lockton successfully creates visibility across the different markets Mainla

Shift to global risks With China becoming a member of the World Trade Organization (WTO) and implementing the Belt an

China World Trade Center

20 Spotlight on Greater China

Carly Kwan Senior Vice President - Greater China Corporate PEC

Overview of the main insurance trends Greater China (China, Hong Kong, Macau and Taiwan) comprises a diverse social,

Insurance Market Update - H1 2022 Lockton Companies LLP

Market trends Real estate: due to the relative softness of the Chinese market, quotes for real estate insurance are a

Hong Kong Leveraging on opportunities arising from the Belt and Road Initiative and the development of the Greater Ba

For further information, please contact: Carly Kwan Senior Vice President - Greater China Corporate PEC E carly kwan

Market trends Real estate: due to the relative softness of the Chinese market, quotes for real estate insurance are a

Hong Kong Leveraging on opportunities arising from the Belt and Road Initiative and the development of the Greater Ba

For further information, please contact: Carly Kwan Senior Vice President - Greater China Corporate PEC E carly kwan

Polygon

Polygon

Insurance Market Update - H1 2022 Lockton Companies LLP

thanks for reading

Get in touch To learn more about any of the information above please do not hesitate to get in touch with us Contact

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Alex Boswell Partner

E alex boswell lockton com

Christian Wuestner Content Lead

E christian wuestner lockton com

or alternatively, visit our website:

thanks for reading

Get in touch To learn more about any of the information above please do not hesitate to get in touch with us Contact

OLYMPUS DIGITAL CAMERA

Alex Boswell Partner

E alex boswell lockton com

Christian Wuestner Content Lead

E christian wuestner lockton com

or alternatively, visit our website:

Insurance Market Update - H1 2022 Lockton Companies LLP

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