We are pleased to share our H1 2022 insurance market update. This issue provides insights across 20 business segments and includes a spotlight feature on Greater China and the local insurance market trends.
The intention of this biannual update is to reflect on both the benefits and concerns prevailing in the market from a perspective of each line of business referenced, along with recommendations of how to best overcome these pressures to achieve the best market results.
Over the course of the last six months, many insurers have returned improved results, with combined operating ratios now being reported at less than 100%, suggesting a return to profitability for many insurers. The continual rise of both medical and social inflation will undoubtedly lead to many insurers still requiring rate increases.
However, for good risks, this will be tempered to more modest increments, or flat adjustments, as we see the competitive environment develop through 2022.
This is a result of more capacity being developed as insurers prepare for post-pandemic growth. The main exception to this trend is the cyber market, where rate increases and a lack of capacity remains a significant challenge.
Despite the improved picture, it is important that we remain vigilant due to the economic forces arising from the unknown consequences of the Ukraine-Russia conflict as well as extreme inflationary pressures and catastrophe costs which could apply a break to further price easing.