Two-Minute Takeaway: Multinational | Q1 2024 Market Trends

Property & Casualty

Two-Minute Takeaway: Multinational | Q2 2024 Market Trends

Multinational Casualty

The multinational casualty market continues to experience flat to moderate rate decreases. These decreases are driven by favorable loss performance and enhanced market efficiencies, with reduced expense costs predominantly emanating from technology solutions. Rate reductions on a year-over-year basis are often furthered by increased exposure, which allows for economies of scale pricing methodology. Capacity continues to enter the marketplace as markets expand their global capabilities and seek to deploy capital within global networks.

Global improvements in data quality and collection have also facilitated the increased application of analytics. The benefits derived from benchmarking and deeper insights into program performance yield reduced risk and related costs when applied to action-oriented outcomes.

The market outlook remains favorable, with the best outcomes typically involving preparatory discussions with key stakeholders and collaboration in reviewing new risk considerations related to evolving global markets.

Emerging Risks

Artificial intelligence (AI) development and application continue to generate new considerations for all parties in analyzing and mitigating risks for multinational organizations. This evolves in tandem with new legislation designed to address concerns related to exposures that this new technology presents. As a result, there are impacts to market capacity and appetite for all multinational organizations, particularly the liability segments and multinationals in the technology sector and industries at the forefront of AI utilization.

Tax Considerations and Global Regulation

Tax implications related to insurance procurement and beyond are an ever-increasing consideration in the total cost of risk at a global and jurisdictional level. Applying adequate allocations in each jurisdiction as part of a global program is critical in maintaining a globally compliant program.

Property & Casualty Team