Why it could be make or break for insurers’ relationships with risk managers

AMRAE has been pushing for the French government to facilitate captive formation in France.

AMRAE’s 2021 State of the Market report made grim reading for insurance buyers, reporting that 95 percent of them had experienced price increases for P&C cover. It also reported increasing exclusions and increasingly generic policy wording – which suggests that underwriters are taking less notice of risk management strategies within individual companies.

In P&C, AMRAE anticipates that capacities will shrink further, by 20 to 30 percent, as a result of Covid-19, supply chain issues, political violence and rising natural catastrophes. AMRAE also anticipates rate increases in future renewals.

In cyber, AMRAE sees a very hard market, with declining capacity and considerable uncertainty about the future. In some cases, rates have increased by more than 100 percent.