After years of highly fluctuating premiums caused by new risks, inflationary exposures and market expansion, we expect the first half of 2024 to be a year of relative premium stability in the financial lines marketplace.
As we have done in the past, this 2023 Year in Review and 2024 Year in Preview publication will take you through the risks that shaped the 2023 FINEX landscape and what we expect to be the most pressing claims issues for 2024.
The theme that you will see across our articles is that although there are continuing and expanding threats, such as ransomware attacks increasing, an evolving and heightened regulatory landscape, artificial intelligence and biometric risks, persistent excessive fee litigation filings, increasingly sophisticated social engineering fraud and pressures on directors and officers from both pro-ESG and anti-ESG forces, the elevated market competition that emerged from the hard market of 2019-21 has driven down rates and created a relatively stable insurance market for FINEX insurance buyers.
While we have relative premium stability in early 2024, we can focus on breadth of coverage, carriers’ claim paying experience, and potentially buying more coverage where appropriate.
However, since 2023 was a year of increased claims volume across the board we must prepare for what comes next. Most FINEX claims have relatively long tails, which we believe may hold off increased premiums in early 2024 due to the substantial market capacity. But eventually carriers will need to account for rising losses with premium increases. For lines of coverage with first party losses, like cyber with record high ransomware attacks in 2023, that day may arise sooner than later as markets drop and consolidate.
Our articles will walk you through the D&O, cyber, EPL, fiduciary and fidelity risks and trends in detail. If you have any questions or want to talk about any of the issues raised in these articles, please feel free to reach out to the authors of the articles directly.
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A look back at the directors and officers (D&O) liability market and our perspective on what to expect in 2024
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A look back at the cyber liability market and our perspective on what to expect in 2024
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A look back at the employment practices liaiblity market and our perspective on what to expect in 2024.
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A look back at the fidelity and crime market and our perspective on what to expect in 2024
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A look back at the fiduciary liability market and our perspective on what to expect in 2024.
Willis Towers Watson hopes you found the general information provided in this publication informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, Willis Towers Watson offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).
