After significant rate reductions throughout 2023 and early 2024, median rates are no longer dropping as drastically as they have over the last 3 years which is in line with our expectations given the significant reductions that have already taken place.
Nonetheless, our initial data for H1 2024 indicates 72% of our clients that renewed in Q2 saw their primary rates decrease or remain flat (further detail can be found in chart 6 in Appendix I). In excess layers, 82% of our clients received decreases or their rates remained flat. Overall, the median rates continue to trend down, which we attribute to continued competition between insurers. We have seen various situations where insurers have declined certain accounts either because rates have become too low or simply because some risks are outside their appetite. However, it is usually possible to replace those insurers with other insurers, meaning that rate reductions remain common, although some countries remain more challenging to find capacity for. While new entrants have been minimal over the last year, there has been a meaningful new entrant who had a broad appetite, experienced underwriters and looking to be commercial where possible which has contribute to the pressure on incumbent markets.
