The transactional liability market is poised for significant changes influenced by various disruptive forces and economic data, including technological advancements, new competition, and regulatory scrutiny. Strong demand signals and new business models are likely to transform aspects such as risk assessment and pricing.
Artificial Intelligence (AI), particularly Generative AI (GenAI), is expected to play a critical role in revolutionizing processes such as risk assessment, claims processing, and customer service in the transactional liability space.
The property market, a key component of the transactional liability landscape, is showing signs of softening, with the rate of increase in premiums slowing down for most insureds.
The upcoming reinsurance renewal seasons are expected to become more organized, with retention levels stabilizing and rates likely to remain steady or close to current levels.
There is an expected emphasis on underwriting discipline, with a stronger focus on risk selection. Risks that were once considered secondary are now expected to undergo higher scrutiny, highlighting a shift in underwriting priorities.
The increase in capital and investors into the market is anticipated to intensify competition, which could influence pricing strategies and profitability across the industry.
Economic and inflationary data coupled with Geo-political risk in 2024 will impact transactional liability market dynamics, potentially affecting risk assessments and pricing models.
Heightened regulatory oversight along with increased competition are expected to challenge market participants, necessitating strategic adaptations to stay competitive.