Willis Towers Watson PLC said Tuesday in its most recent Marketplace Reality report that commercial insurance premiums and rates have begun to stabilize across most industries and coverage areas in North America.
Willis said there is ample capacity available in many areas of the business, leading to increased competition, stable rates and more consistent program structures.
“In addition to high casualties and terrorism, it has become a buyer’s market with customers seeking program improvements through coverage terms, program structure and pricing,” the report said.
In its key forecast for 2024, Willis had seen disaster-exposed assets rising from 5% to 10%, while non-disaster-exposed assets were seen rising from 5% to 5%.
In domestic accident markets, general liability increased from 2% to 8%, while high-risk umbrella increased from 8% to 15%. Casualties over high-threat are seen to increase by 10% or more, while casualties over low-threat are projected to increase by 2% to 7%.
Workers compensation is projected to increase from 5% to 2% and auto from 4% to 10%.
Estimates of public company coverage and directors and executives of private/nonprofit companies declined 10% to flat, the report said. A decrease of 5% is being seen in cyber coverage.
For political risk, most of the risks are seen to be renewed by 10% to 40%.
In terrorism and political violence, terrorism and subversion are projected to increase by 10% for non-unstable areas and by 10% to 25% for unstable areas.
Political violence is increasing by 15% in non-stable areas and by 15% to 30% in unstable areas.
John Drummond, head of broking, North America, WTW, said in the report that “meaningful” capacity was returning across several key product lines.
