This update analyses our observations of the current Crime insurance market conditions and is based on our observations of the market with our WTW clients and not a whole of market review. For ease of understanding, the percentages have been presented as rounded figures.
While the GB market for crime insurance is not seeing the resurgence that is being seen in commercial D&O, there is increased interest from a number of insurers looking to expand their relationships with valued clients. We are seeing some increasing interest from international clients looking for crime insurance from the London market.
In H1 2023, most of our clients saw decreases in their renewals: 36% of our clients renewing in Q1 saw whole tower rate on line decreases while 41% renewed flat. In Q2, 40% of our clients saw whole tower decreases and 32% saw flat renewals. Q3 data shows an even higher number of decreases: 65% of our clients renewed with a decrease in their whole tower rate on line (further detail can be found in chart 2 below).
Insurers have also continued to soften policy terms and are increasingly willing to underwrite business using our proprietary wording (CRIMEstar), a new version is due to launch imminently.
Notifications in H1 2023 continued the downward trend and are currently at the lowest levels since 2007 (see chart 3 below).
Source: Data from WTW FINEX FINMAR client placements, sourced as 17 October 2023, see Appendix II for further information
Whole Tower median rates on line remained relatively steady in 2022 and early 2023 with a peak in May 2023 followed by a decrease in June 2023. The 6-month rolling average is relatively stable with the lowest levels since 2020.
At renewal in Q3 2023, most of our clients saw whole tower ROL reductions, as below:
Source: Data from WTW FINEX FINMAR client placements, sourced as 17 October 2023, see Appendix II for further information
Most of our clients saw their deductibles renew at the same level.
Our internal data indicates that notifications to crime policies by our clients continue to be significantly down compared to the highs of 2017-2019:
Source: WTW client notifications from GB placements only, between 1 January 2008 to 30 June 2023
Source: Data from WTW FINEX FINMAR client placements, sourced as 17 October 2023, see Appendix II for further information
Data from WTW FINEX FINMAR client placements, sourced as 17 October 2023, see Appendix II for further information
| Min | Max | Notes | |
|---|---|---|---|
| Rate on Line | 0.01% Rate on Line | No max | Rate on Line is calculated by dividing the premium by the limit of liability that is being purchased and expressing that as a percentage. This shows the proportional cost of the limit of liability being purchased by each client. |
| Rate on Line change | 0.01% Rate on Line | No max | We are comparing the Rate on Line paid last year to the Rate on Line paid this year for a given client at renewal. |
Figures in this report are based on WTW FINEX FINMAR client placements, sourced as 17 October 2023, and WTW client notifications from GB placements only, between 1 January 2008 to 30 June 2023. They will be updated periodically to reflect additional records. Graphs in this report show the moving average between 2020 and Q3 2023.
