Annual Insurance Review 2023

Hello and welcome to RPC's Annual Insurance Review – a look back at the events that shaped the insurance market in 2022 and a look forward towards what to expect in 2023.

Welcome to RPC's 2022/2023 Annual Insurance Review, where we herald the start of a new year by looking back at the key developments for the insurance market in the last 12 months and hypothesising on what to expect in the year to come.  As always, the Review looks at the trends across key lines of business and also jurisdictionally, with great insight from our Global Access partner firms.

The clearly dominating theme of this year's Review is ESG – especially the battle against climate change, both how it is impacting the insurance market and how the market can be a force for positive change.  Across the various sector and geographical updates, you will read how mixed public/private initiatives are providing solutions to cover those at greatest risk of climate disasters; how green tech and sustainable project investments are booming; how the insurance market is acting as a positive force for change; and how various insurance industry wide initiatives are seeking to drive that change.

ESG as a source of claims is also a common theme this year, including the growing risks of "greenwashing" claims as national and international regulatory reform in this area is looking to drive broader ESG transparency and good governance.

In addition to reading how ESG is impacting the insurance market from Africa through to the Warranty & Indemnity sector, another common theme this year relates to how many years of rising markets and ultra-low interest rates has now emphatically ended.  With the war in Ukraine and increasing economic headwinds vexing global policymakers, economic volatility promises to be the "new normal" in 2023.  

In the UK, corporate insolvencies have been rising sharply in 2022 albeit against the backdrop of record low insolvency during the pandemic. By June, they had reached their highest quarterly level since 2009.  Of course, economic downturns and high levels of insolvency often drive claims activity, and given the expectation that many of the world's leading economies will tip into recession in 2023 (with the UK's recession projected to be one of the worst on record) many sectors anticipate increased claims activity in the coming years.

Thanks in particular to our Global Access partners for once again providing international insights from their markets. Unsurprisingly the key areas impacting the UK are also being felt further afield with climate change and environmental challenges again being highlighted as areas insurers need to be wary of in 2023. As you will see from reading the Review, many countries are embarking on their own sustainability journey as well as joining forces to make a difference globally. The role of insurance in realising these global targets cannot be understated.

It's been another extraordinary year for the insurance industry, we hope you find the review useful and if you have any questions on any of the topics raised, please do not hesitate to get in touch with the authors directly.

From all at RPC we look forward to working with you to help you make the best of whatever challenges and opportunities await and wish you all a prosperous and healthy New Year.

To find out more, explore this year's highlights below or download the full Review.