As we enter the second quarter of 2022, we expected to see more of a slowdown of the hard market conditions than what has materialized. Even with many carriers reporting improved loss ratios and record earnings, tightening capacity and rate increases are not quite behind us.
We continue to see carriers shift away from volatility as they reduce the amount of limit deployed in high hazard classes, locations and perils, as well as simply exiting classes of business.
Russia’s invasion of Ukraine is expected to generate meaningful losses for certain lines of business and the economic effects of sanctions are putting additional pressure on oil prices and further accelerating U.S. and global inflation. The Federal Reserve has started raising rates in an effort to slow inflation. However, the pace of interest rate increases and the impact on inflation are wild cards, and we likely won’t know their full impact until further into 2022 and 2023.
In this State of the Market report, our specialists dive into factors affecting market conditions and share intelligence spanning rate, capacity and coverage trends across numerous lines of business and industries—both domestically and in London.
At Amwins, our goal is to add value to our clients—regardless of the market environment. We focus on helping you deliver the best product the market can provide through a specialized platform that delivers knowledge, market access and unique solutions. So, no matter what the future brings, Amwins is prepared for it and wants to ensure you are too.