Insurance market

Note from insurance broker. Sounds good for Berkshire if true.

A summary of the current Insurer challenges is as follows:

Hard Market Conditions continue to dominate the market – most challenging conditions in 20 years extending across many classes of insurance cover.

The impact to clients is not restricted purely to price increases, which can be several multiples of the expiring premium.

Of greater consequence is the effect of reducing Insurer appetite, with certain trades finding it difficult to obtain the required cover at any price.

Several Insurers have exited the market after assessing there was little opportunity for profit.

The market deterioration is more frequently evidenced by Insurers reducing their capacity and on occasion participation, which is requiring additional market support from several Insurers to provide cover which may previously have been provided by one carrier only. This in turn drives further price increases and cover restrictions.

The Property insurance market is now experiencing severe capacity reduction and price increases with insurers being very selective on which risks they wish to participate in.