As we move into 2020, we thought it would be an appropriate time to share our perspectives on what the year may hold for the General Liability market.
Overall, we continue to see a contraction in capacity & appetite across a number of occupational classes within the casualty space, driven by a continued deterioration of loss trends, going as far back as 10 years. This is overlayed by a continued conservatism in the deployment of capital from the Lloyds market, which became the flavour of 2019, particularly in the traditionally more difficult to place occupations, where the local agency markets have tended to play.
The occupations classes that will continue to be affected by this environment include construction, labour hire, hospitality, commercial cleaning, shopping centres & certain leisure operators with exposure to catastrophic ride failure.
We saw 2019 as a year where the market was hardening around the edges. There are clear signs that market performance in the casualty space, both locally & internationally, continues to deteriorate. The APRA quarterly General Insurance Performance Statistics released in November 2019 are a key lead indicator of this trend, with net loss ratios in long-tail classes taking a 17 percentage point jump.
As local insurers look to de-risk their portfolios, it will naturally come back to the Agency players to provide innovative & flexible solutions to the market, based on experience & expertise.
Over the next few months, Pen will release in depth articles on some of the occupations mentioned above, tapping into our experience in writing these occupations
and suggesting ways to approach the risks you have coming up from renewal.
Watch this space for more insights to come.
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