Rates, growth, and alt cap are the industry’s current main worries, survey finds

The dynamic around rates and terms and conditions, the impact of alternative capacity on the market and how to grow those will be some of the biggest talking points at this year’s annual American Property Casualty Insurance Association conference in Boston, according to a survey of Intelligent Insurer readers.

In a poll in which respondents were able to select multiple answers, more than 60 percent selected each of these responses. Consolidation, regulation and insurtech are lesser issues for the industry at the moment it seems with focus instead on whether the fabled hard market is returning and how insurance-linked securities (ILS) capacity may impact it.

“Everyone would love a hard market but in reality people realise that’s a pipe dream and the traditional players blame alternative capital,” one respondent said.
“Rates are increasing but they are still way too low. There is just too much capacity out there still.”

Another commented that growth should be a concern for the industry. “Those who worry about rates, should really be worrying about increasing the size of the pie,” said one. “The protection gap is ridiculous let’s sort that out first.”

Outside the options we offered, respondents suggested that cyber remained a big talking point, as does adverse development in casualty business and the US economy.

In terms of why people attend APCIA, it’s all about relationships, as the chart shows.