The U.S. commercial insurance market remains largely favorable to buyers across most lines of coverage, according to Lockton's latest quarterly market update. This positive environment is attributed to strong profits among insurers, which have been bolstered by a robust pricing environment. However, despite these favorable conditions, uncertainty looms due to rising liability costs that create unpredictability in the market. Mark Moitoso, Lockton's Risk Practices Leader, emphasized that while property conditions are improving and workers' compensation remains competitive, social inflation is significantly impacting third-party liability costs. Additionally, the Directors and Officers (D&O) market shows strong capacity, while pricing in the cyber insurance sector is declining despite ongoing concerns about losses. The report also highlights a growing interest in alternative risk strategies as businesses navigate these challenges [88388f02].
In parallel, AM Best has revised its outlook on the London market insurance segment to positive from stable, driven by a strong pricing environment and good underwriting profitability. The positive momentum of U.S. excess and surplus (E&S) lines presents opportunities for the London market, alongside an improved interest rate environment that supports healthy investment yields. Nevertheless, the segment faces challenges related to climate change and social inflation, which could impact certain business lines. Overall, the revised outlook reflects the positive prospects for the London market insurance segment while acknowledging the complexities of the current insurance landscape [5523b2dc].