Rate increases within the property market have continued but are showing signs of moderation. Carrier retentions have grown as most E&S carriers are managing CAT exposure and portfolio “rightsizing” is almost complete. Capacity is plentiful for casualty risks, and it remains a buyers’ market.

While building is still going strong, clients are more cautious on new projects given the overall state of the economy and its impact on obtaining loans and meeting lender requirements. CAT rates continue to fluctuate depending on project nature and location, with sublimited NWS and higher water damage deductibles becoming more commonplace.

While social inflation is hitting the energy sector hard, claims costs continue to increase and insureds are facing intense underwriting scrutiny. Combined with a growing backlash against green energy and overall losses within the sector tied to costs of energy transition, it’s not surprising that U.S. pricing trends continue to push upward.

Overall, the environmental sector continues to grow with stable rates and new entrants in the space. Some of the big growth classes include renewable/alternative energy, energy-related contracting, and manufacturing/distribution. Coal remains a difficult class to write and PFAS exclusions are becoming the new standard for risks that have any exposure.

The healthcare market remains in a state of flux with some areas of the sector seeing some softer pockets while others face a harder market. Overall, conditions seem to be stabilizing. 

In the public entity space, the property market continues to harden, while the casualty market is seeing a firming of rates. Convective storm-prone areas are becoming increasingly more difficult to secure coverage.

The transportation sector is under immense pressure with high input prices and lower freight rates, while many trucking companies are downsizing or selling to competitors. The auto industry also needs to protect themselves against the threat of cyber-attacks as they are becoming a vulnerable industry.