The mid-year renewals should see commercial market trends continuing to improve for insurance buyers, national broker EBM says in an update.

It says there is “cause for tempered optimism” despite uncontrollable variables such as inflation, geopolitical conflicts, supply chain bottlenecks and interest rate movements.

“Overall, there was increased stability and more competition … clients have enjoyed greater choice as more options became available and renewed control over risk placement emerged,” the broker said.

Premiums in most commercial lines levelled out and capacity for businesses with “quality risks” returned. Pricing for hard-to-place risks improved as new competition entered the market, particularly from London and Singapore.

“Following several years of significant premium rises and challenging market conditions, confidence in the insurance market continued to grow … there is cause for tempered optimism that conditions will continue to improve for many clients, bringing welcome relief after several very challenging years.”

Here is EBM’s summary of key business lines:

Property

Despite increased insurer competition and capacity to write more business, the property market continued to be challenging last year and into this one.

Renewal premiums remained high and a greater number of property risks were declined than in previous periods. Cover for loss-affected clients and those with property in catastrophe-exposed areas was especially difficult, and prices increased.

Professional and financial lines

Market conditions continued to improve, especially for clients in a sound financial position.

The introduction of new local insurers and competition from the London market lifted confidence in the lines. This led to greater premium stability, with rates levelling or decreasing 5-10%. The drop in premiums was led by falls in directors’ and officers’ liability, with many clients experiencing reductions, some of which were 10-15%.

Marine and cargo

While conditions moderated, geopolitical concerns weighed on the market. Insurers were especially focused on war risks, dark fleets (vessels operating in breach of sanctions) and the resurgence of piracy.

As a result, key policy clauses concerning vessels visiting political hotspots and perils such as war, piracy and terrorism were implemented.

Premiums for marine cargo ranged from flat to single-digit increases for clients with good loss experience. Rate rises exceeding 10% were applied to clients with marginal to poor loss experience.

Construction

The construction industry continued to face challenges throughout last year and into this one, and the insurance market remained hard.

Insurers continued to pursue growth through careful pricing, targeted appetite and disciplined underwriting. Moderate price increases for contract works and liability policies were applied for most risks, coupled with increased excesses and restrictions in coverage.

Click here for more from the market update.