Insurer consolidation, smart technology and the sharing economy are three of the trends that will shape buyer and carrier behavior in 2016, according to Marsh.

These trends will have far-reaching impacts on pricing, risk scrutiny and international appetite. In its annual Top 10 List report, Marsh's U.S. Casualty Practice analyzes the state of the casualty insurance market, and identifies key trends that are expected to shape the insurance marketplace.

Here are the 10 trends Marsh outlines:

1. Lowering rates

Insurers tell Marsh that current rates barely cover their losses after factoring in inflation and claim development.

However, the economic turnaround from the past few years has led to increasing exposures, which has lessened the effects of these rate decreases while generating more premium.

This dynamic will continue to offset 2016's downward rate pressure on competitive lines of coverage, including Workers' Comp, General Liability and Umbrella/Excess liability, Marsh predicts.

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2. An awakening auto market

Bucking trends, the automobile liability market will likely see increased pricing and reduced capacity in 2016, March writes in its report, because combined ratios are down due to the rising frequency and severity of auto losses.

For harder-to-place liability risks, brokers and insureds will turn to alternative markets this year. "Insureds will also need to focus on loss control techniques, including driver safety training, fleet maintenance, and the use of telematics through vehicle monitoring devices," Marsh says.

Related: Auto insurance up 5.7% in December consumer price index

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3. More mergers

Coming on the heels of the ACE/Chubb and XL/Catlin mergers, other insurers will look to create synergies. Some carriers will shut down unprofitable lines or consolidate expenses to diversify capital. Mega-mergers still are possible, and Marsh predicts that larger insurers will look at acquiring specialty carriers to round out their products and services in niche areas.

The continued emergence of foreign insurers, particularly from Asia and Europe, will play out in 2016. Marsh points to recent acquisitions by Tokio Marine and Fosun International as evidence of appetite diversification.

Related: Ace completes acquisition of Chubb, unveils new identity

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4.  An individual approach

Insurers will underwrite on an account basis, as opposed to a portfolio approach this year, Marsh says, in order to target profitable business and better identify adequate renewal rates. As such, carriers will scrutinize risks more closely to ensure underwriting profitability.

Risk will play a larger part in renewal terms, as well as increased participation among key client personnel.

Insurers will rely on their data to drive underwriting decisions, which may become more industry-specific. Brokers and insureds will need to use client-specific data and exposures to best represent their risks and differentiate themselves.

Related: Insurers not quite reaching digital transformation, survey says

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5. But across multiple platforms

Insurers who can make underwriting decisions across multiple products — including primary, excess and international — will remain ahead of competition. A combined casualty approach will benefit clients, improve pricing and prevent coverage gaps.

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6. On-demand economy

The sharing economy is changing the traditional definition of employee, which creates challenging for employers and insurers.

Personal and Commercial coverages will need to be reconciled as clients look to this new way of doing business.

For example, are individuals who are compensated through the on-demand economy actually employees, and are they entitled to Workers' Compensation? Marsh says to expect court cases and litigation to play out on this topic in 2016.

Related: Uber barred from imposing new contract on drivers in pay lawsuit

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7. Liability claims

Expect litigators to focus on new areas on behalf of claimants this year, including traumatic brain injury, police brutality and post-traumatic stress disorder.

Marsh theorizes that this is because automobile liability claim settlements and labor law actions have been costly for insureds, and they will need to focus on other loss mitigation techniques to minimize expenses.

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8. Get smart

Technology embedded in devices such as glasses, watches, vests and hard hats will become more prevalent in Workers' Compensation injury prevention.

Look to these devices to also capture data that will be used to make changes to work sites and safety and loss control programs.

Two-way video and other smartphone apps will be more widely used to improve access to healthcare and medical response to remote workers, Marsh says.

Related: Smart products have big implications for insurers

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9. Social tools

Social media profiles will play an increased part in claims investigations.

"While some third-party administrators already analyze social media to determine the whereabouts and status of injured workers or claimants, trolling the Web for relevant data points will increase in 2016," Marsh writes.

Related: How predictive modeling is flagging fraudulent claims