Accurate valuation is critical for setting appropriate coverage limits and premiums, yet insurers often rely on outdated or incomplete information provided by policyholders. Underinsurance is a growing concern for the committee, particularly in high-inflation environments where rebuilding costs can rise sharply. The committee worked with the LMA Property Insurance Claims Group to develop a model appraisal clause.

Natural catastrophes are a major issue in property insurance due to their increasing frequency, severity and unpredictability, driving larger and more frequent claims. For underwriters, this creates challenges in accurate evaluations and policy terms and is an issue under continuous review by the panel.

US regulation presents a complex challenge in property insurance due to its state-by-state framework. Each state sets its own rules, creating a fragmented regulatory environment. This lack of uniformity increases compliance burdens for insurers operating nationally and can delay product development and pricing adjustments. The panel works with Lloyd’s US legal and regulatory office to keep up to date with developments.

Sustainability is becoming a critical focus in property insurance as climate change, environmental regulation and societal expectations reshape the risk landscape. The challenge lies in balancing these with profitability and risk tolerance.

Twice a year, the panel organises the D&F Forum. The forums explore current regulatory and coverage developments across the US property insurance market.

The events are open to all LMA member market practitioners of D&F property.

The committee monitors the impact of climate change and extreme weather on commercial property insurance. Underinsurance is a growing concern as rising risks outpace coverage, especially in flood-prone areas. The committee works to develop improved risk models and policy wordings to address these emerging challenges effectively.

The LMA’s DARE Computable Binding Authority Agreement (CBAA) initiative addresses key issues that the committee faces, such as improving operational efficiency, enhancing data accuracy and streamlining the underwriting process in commercial lines. The committee’s members provide critical feedback on the modular components being developed in the CBAA, ensuring that the needs of the commercial property and casualty market are met.

The committee liaises with Lloyd’s Complaints and the Financial Services Ombudsman Service (FOS) to address customer complaints within commercial property and casualty lines. This ensures effective resolution of disputes, enhances market practices and supports the development of fair, transparent policy wordings that comply with regulatory standards.

The LMA Academy’s Foundation for Underwriting Terrorism Insurance programme provides foundational knowledge for junior underwriters wanting to learn more about this class of business. The programme, developed by this committee, covers core concepts, market practices, wordings and global risk trends.

The committee is currently addressing the issue of obsolescence, investigating ways to mitigate the effects of outdated equipment within industry. With technological advancements and the push towards more sustainable solutions, the committee is dedicated to staying ahead of emerging trends and ensuring that LMA members are equipped to navigate these changes effectively.

Heavy rain, hail and tornadoes pose significant risks to renewable energy projects, leading to downtime, infrastructure damage and financial losses. These storms can damage solar panels, disrupt wind turbine operations and affect other renewable energy systems. The increasing frequency and intensity of SCS, coupled with the rapid growth of renewable energy projects, are exacerbating these risks.

Market claims data shows an upward trend in both the number and cost of claims. This reflects the growing regulatory pressure, complex global supply chains and rising consumer expectations. Insurers are seeing larger, more high-profile recalls and are adapting by refining coverage terms and focusing more on proactive risk management.

Emerging risks such as PFAS and aflatoxins are becoming increasingly significant in the product recall market. PFAS are under growing regulatory and legal scrutiny, especially in food packaging and consumer goods. Aflatoxins, naturally occurring toxins in crops, pose contamination risks in food supply chains. Both present challenges due to evolving science, uncertain liability and the potential for widespread recalls. As awareness grows, the committee is closely monitoring these developments.

The committee reviews global banking rules, particularly Basel frameworks, to advocate for the recognition of credit insurance as an effective credit risk mitigant. This work supports the role of insurers in structured finance, ensuring the support of the London market remains viable for banks under tightening capital adequacy requirements and regulatory scrutiny.

The committee supports the development of training programmes and initiatives aimed at enhancing market expertise in political risk, credit and financial contingencies.

The committee’s recent review of US consumer wordings aligns with broader initiatives aimed at promoting clearer and more customer-centric insurance documentation. The committee is undertaking a series of projects to update older wordings, with the goal of supporting the market with clear, compliant and accessible model wordings.

The committee continues to discuss the administration of group personal accident business, to assist the market in meeting the regulatory requirements.

The Cyber Reinsurance Sub-Committee is a sub-committee of the NACR, dealing with cyber reinsurance treaty matters from an LMA committee perspective. The panel has addressed recent issues, such as the Y5433 Lloyd’s bulletin on state-backed cyber war compliance.

For reinsurers, these risks are complex and long-tail in nature, making it essential to closely monitor trends, ensure adequate pricing and manage exposure across diverse jurisdictions. As legal and medical landscapes evolve, so too must the strategies used to underwrite and structure risks in these classes.

The panel maintains relations with the National Council on Compensation Insurance – the most important rating and data bureau on workers compensation claims in the USA – and the Workers Compensation Insurance Rating Bureau (WCIRB) of California. This is important as the risk and the sector develops, judicial and regulatory changes are implemented and as medical technology and practice improve survivability and long-term care.

The panel stays ahead of complex regulatory developments in the US, where each state has its own legal framework, claims environment and approach to various issues. The variability between states demands careful underwriting and close monitoring to maintain performance. The panel is in regular dialogue with Lloyd’s America’s legal and regulatory team to ensure they are informed on the latest developments.

Exposure management in international casualty reinsurance is inherently complex due to the unpredictable and long-term nature of the risks. Managing it effectively requires robust data, global legal insight, effective underwriting and constant vigilance. The panel works closely with the LMA’s Exposure Management Working Group’s (EMWG) casualty panel to contribute to thinking and Lloyd’s RDS discussions.

Insurers are important advocates of animal safety and welfare. The committee continues to engage with veterinary organisations and other stakeholders to ensure that animal welfare remains a top priority. The committee is currently review contractual language in model wordings relating to animal euthanasia and liaising with leading equine veterinary bodies to discuss the issues.

The committee is conducting a review of equine and livestock wordings to stay ahead of evolving regulations and emerging risks. These updates will also ensure coverage reflects technological advancements and new risk management practices, keeping policies relevant and effective in managing current and future risks.

Collaboration with the veterinary industry offers expert insight into animal health, ensuring market practitioners stay aligned with the latest veterinary practices. The committee works closely with veterinary professionals to enhance risk assessment accuracy, refine policy development and improve the effectiveness of claims management.

The committee is currently addressing the issue of obsolescence, investigating ways to mitigate the effects of outdated equipment within industry. With technological advancements and the push towards more sustainable solutions, the committee is dedicated to staying ahead of emerging trends and ensuring that LMA members are equipped to navigate these changes effectively.