Willis Group Holdings, the global insurance broker, today published the 2010 edition of its Marketplace Realities and Risk Management Solutions report, the company’s long-standing annual series offering commentary and analysis on the insurance marketplace in every major line and select industry sectors. The report is available, free of charge, on the company’s web site, www.willis.com.
The subtitle of the two-part report is Careful Steps. Marketplace forces that have led recently to sometimes frenzied competition among insurers may remain in place into 2010, according to Willis experts, but potential difficulties brewing on the horizon may have a market-turning effect by late 2010 or 2011. In introductory comments, Willis Chairman and CEO Joe Plumeri says, “While undoubtedly appreciating the windfall of softening rates, risk managers must also consider the issues of market security and counterparty risk as never before… We urge our clients to move deliberately, thoughtfully, to take an extra moment and consider the broadest perspective in their view of risk. And as always, Willis will be helping our clients take careful, smart steps forward.”
The 2010 report is being published in time to help insurance buyers make plans for the coming year. In addition to articles on Property, Casualty, Workers’ Compensation, Employee Benefits and all Executive Risks lines, the publication includes pieces on U.S. reinsurance, captives, the Bermuda and London markets, international programs and on several key industry segments and specialty lines. Industry segments include Aviation, Construction, Financial Institutions, Health Care, Life Sciences, Real Estate & Hotels, and Utilities. Insurance lines covered include Environmental, Marine, Personal Insurance, Political Risks, Kidnap & Ransom, Surety and Trade Credits.
Highlights from the articles include:
- Some insurance lines are hardening — While the market remains soft in most lines, political instability, global bankruptcies and losses in aviation have brought on rate increases for Trade Credit and Aviation coverage.
- Filling a gap in supply chain protection — Marine and other insurance that protects supply chain exposures usually share one major shortcoming: it usually requires a physical loss to respond. Trade Disruption Coverage fills that gap.
- Estimates for catastrophic losses may be coming down — New models used in Property insurance are lowering the estimates of loss from earthquakes and hurricanes.
- The world is catching up with the litigious U.S. — Our International experts note that the concept of moral damages — which underpins much of the litigation in the U.S. — is becoming a part of the thinking in Latin America.
- Financial institutions are avoiding the broad brush — Banks are not having an easy time of it, but those that have successfully managed their risk — and can document it — are seeing flat renewals and even occasional reductions in premiums. The publication, which is updated periodically throughout the year, is available on the Publications page of the Willis web site .