A deductible (or excess) is the portion of a loss retained by the insured before the policy responds, directly influencing both risk-sharing behavior and premium levels. Higher deductibles generally reduce premium but increase the insured’s volatility, making the choice a key tool in tailoring programmes to risk appetite and cash‑flow tolerance. For insurers, deductible structures affect claims frequency, administrative burden, and the shape of portfolio loss distributions, informing pricing, wording, and reinsurance strategy.
But Moody's flags potential multi-billion exposures as insurers juggle aggregation, shadow fleets and offshore energy risks
Insurers, P&I clubs and brokers are forced to confront hard limits on insurability
Defence lawyers warn litigation funding and jury psychology are accelerating social inflation across US casualty risks
Association chief said member companies remain active amid the fast-moving situation
Rising repair costs and US awards test underwriting assumptions
