Both property and casualty insurance markets are in the midst of hardening, according to a survey of CFOs at leading North American P&C insurers.

The survey from Towers Watson finds that 75 percent of the 23 participating CFOs believe the current property market is hardening, hard or at the top of the cycle. Towers Watson says this represents “a nearly 30 percentage-point increase compared to results from this survey two years ago.”

For the casualty market, 65 percent of respondents said it was hardening, hard or at the top of the cycle, a 52 percent increase compared to two years ago.

“Only 15 percent said the property market is softening, while 10 percent said the casualty market is softening,” Towers Watson said in a statement.

Of the respondents who believe the property and casualty markets are hardening, just over half—51 percent for property and 52 percent for casualty—indicated they expect the market to remain this way for the next two years. “Those who see hardening in the casualty market think it will last longer than in the property market,” Towers Watson says.

“Insurers' perceptions of the market have changed considerably, from a glimmer of hope for a turn in the insurance cycle, to the solidifying of firmer rates we're experiencing today,” says Bruce Fell, a managing director in Towers Watson's Risk Consulting and Software business, in a statement. “The impact of the softer market the past several years, combined with low interest rates, has hurt insurers' profitability. The state of today's market should give insurers some breathing room and an opportunity to increase their bottom-line.”

Special Reports /

Insurer CFOs See Market as Hard or Hardening, but Are Split on When Rates Will Dip Again

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