The global commercial property market is generally stable and even softening for risks not exposed to natural catastrophes. This is due to ample capacity and improved modeling. However, regions prone to catastrophic events still face tighter terms, higher deductibles and more selective carrier appetite.

Natural disaster loss trends, including secondary perils like convective storms, floods and wildfires, continue to heavily impact these CAT-exposed locations. Global insured catastrophe losses are estimated to surpass $146 billion, well above the 10-year average of $108 billion.1 In contrast, the global casualty market remains firm. Carriers maintain strict underwriting discipline for general liability, auto and excess casualty lines, particularly in segments affected by social inflation and large nuclear verdicts. Carriers are increasing reserves due to uncertainty, as rising litigation costs and social inflation elevate liability expenses worldwide. This trend is especially impactful from an excess and umbrella perspective.

The cyber market continues to be favorable for insureds. Insurance buyers are finding expanded capacity, broader coverage options and competitive pricing. This positive environment is partially offset by an increase in the frequency of claims and a heightened focus from carriers on existing security controls and concentrations of exposure.