Construction Lines
With many (re)insurers returning to profitability now that long-tail business written in the soft market is gradually handing over, rates have remained stable in the first half of 2024, with a possibility for slight softening of terms and conditions, particularly on Project business. We expect this to continue into the second half of the year, with coverage remaining generally broad and consistent. Appetite remains good, with a variety of projects considered and solutions being offered by the market.
Coverage
Coverage has and is expected to remain stable for the rest of 2024 at least. Discussion amongst insurers continues around including LEG 3 in construction policies.
Rating
With growing competition and greater appetite to grow, we believe that rates have now, pretty much, topped out.
Appetite
Underwriter responsiveness is improving with multiple carriers bolstering their teams. With Hurricane Beryl bearing down on the Caribbean as this is written, Natural Catastrophe (Nat Cat) remains a key consideration for insurers on international placements.
Capacity
Following many new entrants over the last 12-18 months, capacity is now the strongest it has been since the hard market forced several carriers to run off their construction books.