2023 US Casualty Market Outlook

This report outlines the current state and expected future trends of the US casualty insurance market. It describes a period of growth characterized by the entry of nearly 30 new insurers since 2020, which has contributed to a stabilization of the rate environment, particularly in sectors such as commercial construction and manufacturing. However, challenges remain in specific areas like habitational and educational insurance due to limited capacity. The document details the competitive landscape of pricing, with many carriers seeking rate increases of 8 to 12 points, while also sharing the nuances of rate changes for higher coverage amounts. The impact of inflation on various sectors, including the increased costs of claims, is explored, highlighting the need for creative approaches in policy rating and renewals as market dynamics shift. The report also discusses the complexity introduced by new entrants and the volatility this brings to the traditionally stable casualty market.