Editor's note: Pamela Ferrandino is executive vice president, national practice leader for casualty, placement at Willis. This entry originally ran on WillisWire

Moderating rate pressure continues in the casualty marketplace in North America, and we are counseling risk managers not to take the money and run, but to sit down with their carriers and consider several ways to take advantage of what is turning into a buyer's market. Renewals are largely flat on primary policies and rates are falling in umbrella and excess towers.

Pressure on casualty insurers is coming from several areas with no sign of letting up. As low interest rates compel carriers to bring in premium dollars, capacity remains abundant, which further promotes competition.

Workers' comp

Another factor driving competition in the primary casualty space is that many carriers heavily focused on Workers' Compensation business are trying to diversify their writings. Many of these carriers were hammered in the past year by combined ratios beyond 120, sending them in search of other casualty lines to write in an effort to balance the portfolio—again increasing competition.

In further efforts to use their capital efficiently, carriers are also becoming more niche-focused, concentrating on industry segments and sub-segments.

Opportunity

What all this spells is opportunity at the negotiating table. As carriers differentiate their appetites, buyers should use analytics and careful documentation to differentiate their risks. They can then talk to carriers about expanding coverage into new areas of risk or offering value-added coverage at renewal.

Who will see increases?

Not all industries are seeing reductions. Construction, transportation and food and beverage companies will likely face rate increases in the coming months.

For most others, though, this is a time to take a moment to think strategically about the opportunities that lie ahead.

Click here to see Ferrandino's recent WillisTV interview on the casualty marketplace.

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.