Our Two-Minute Takeaway provides a quick overview of notable topics and trends in the mid-level marketplace. Read on to learn more about what’s happening in the multinational sector. 

Multinational Casualty

The multinational casualty marketplace continues to experience a recurrence of flat to marginal rate reductions driven by multinational casualty carrier profitability.  

• On a global program basis, the flat to marginal rate decreases are often based on the program’s global scale and policy count, given continued satisfactory portfolio loss performance.  
• The expense ratios and costs related to program administration often play a significant role in multinational programs’ rate and minimum premium funding requirements. 

The U.S. multinational casualty portfolio should be evaluated annually for alternative program structures based on loss experience and exposures.  

• Evaluating the total cost of risk helps to determine if the guaranteed cost option continues to reflect an equitable solution for global insureds or if alternative structures should be considered. 

Technology and Online Platforms

An increased focus on real-time access to global insurance details places an ever-increasing need for collaboration between the insured, broker(s) and carrier. This creates a reliance upon effective technology and tools driving global program transparency and efficacy. 

• Technology-focused resources allow multinational programs to operate without interruption while planning for future global growth. Historically, technology platforms offered have been underutilized. Now, they are a prerequisite for managing a dynamic global program.

PFAS (Perfluoroalkyl and Polyfluoroalkyl Substances) Exposures and Exclusions

Like the U.S., multinational carriers are taking a closer look at PFAS exposures as industry experts predict that PFAS is on the brink of substantial unfavorable developments, including class action lawsuits and broad global litigation.  

• Several industry experts predict that PFAS exposures will rival asbestos. As researchers better understand the potential harmfulness of PFAS, litigation has followed.  
• While insurers have historically argued for the lack of liability resulting from “forever chemicals” pollution, businesses have pushed back.  
• Coverage is becoming increasingly scarce as underwriting efforts are more deeply scrutinized.  
• The current and expected increase in global litigation and related PFAS claims requires customers and carriers to evaluate PFAS exposures proactively and thoroughly to help prepare for renewal discussions.  

Property & Casualty Team