1、February 2023Global Insurance Report 2023:Expanding commercial P&Cs market relevance The nature of risk is evolving faster than ever.Commercial carriers must step up to fulfill the societal desire for resilience in a volatile world by closing protection gapsor risk losing relevance.This article is a

2、 collaborative effort by Susanne Ebert,Robin Huettemann,Kia Javanmardian,James Polyblank,Sirus Ramezani,Shannon Varney,and Leda Zaharieva,representing views from McKinseys Insurance Practice.ContentsiiIntroduction 01Define a clear source of distinctiveness to compete beyond rates07Expand relevance i

3、n the face of the structurally changing nature of risk13Access capacity through alternative capital and publicprivate partnerships to compete in a tight capital cycle19Build the capabilities and talent to manage the shift from art to science iGlobal Insurance Report 2023:Expanding commercial P&Cs ma

4、rket relevanceIntroductionGlobal commercial property and casualty(P&C)lines have delivered strong financial performance in recent years following the soft market of 2013 to 2018,despite widespread disruption in the wake of the COVID-19 pandemic,the war in Ukraine,and the resulting supply chain disru

5、ptions.Premiums have been propelled by extensive year-on-year risk-adjusted rate hardening:the annual premium growth rate for commercial P&C lines has hovered at 6 to 8 percent since 2018,and combined ratios have been improving(Exhibit 1).However,commercial carriers find themselves at an inflection

6、point as they face a continuing cycle of economic uncertainties,including inflation,geopolitical headwinds,environmental challenges,and capital constraints.This gradual acceleration of macroeconomic trends across multiple events that are pressuring the insurance industry is different from previous s