The US Casualty insurance market is facing significant challenges as insurers contend with heightened claims inflation and a tighter capacity environment, especially at the lead level.
As Russ Stein, executive vice president at RPS, describes: 'If you look back two or three years, you could get one carrier to write a lead five, but those opportunities are becoming increasingly rare. Now, you might need to secure a lead two and build from there.
"Once you reach a certain attachment level — often five or ten, depending on the class and exposures — competition picks up. But really, there are not a lot of people that want to jump in and play on a lead."
Despite these capacity constraints, Stein remains optimistic about the opportunities for agents willing to explore beyond the more traditional markets.
"Incumbents on many placements are at a disadvantage, and getting fresh eyes on a risk can often lead to better pricing," he says. "Many incumbents are limited by rigid rating models that require them to push through 5% or 10% rate increases at renewal, regardless of exposure.
"But if you approach a prospective market, they often deliver some better pricing,' he continues. 'With continued capacity restrictions from standard carriers and the continued flow of business going through the E&S marketplace, there's a ton of opportunity out there. New market entrants are creating market rate stabilization in excess of $10 million."
However, this shift is requiring brokers to use an increasing number of carriers to provide adequate cover, an approach Stein likens to a game of Tetris.
"It's just about figuring out how to fit the pieces together competitively — like a game of Tetris,' he says. 'We recently placed a $200 million excess tower, and the number of carriers on the tower went from 11 to 16."
RPS Vice President Adam Wood says that the London market is one area where agents may be able to find new innovative products, citing the example of excess auto business.
"We're seeing London becoming a bit more aggressive than domestic carriers, especially on large deals,' he says. 'They can offer a three-year guaranteed policy with a return premium if there are no claims after that period, along with an additional premium if there are losses in the excess.
"This approach provides a three-year rate lock in a very uncertain rate environment."
Ultimately, success for brokers navigating these conditions depends on their ability to explore new and innovative market options, maintain flexibility and think beyond traditional pathways.
Learn more about what's next for the Casualty market in the RPS 2025 Casualty Market Outlook.
