Bucking trends, the Auto liability market will likely see increased pricing and reduced capacity in 2016, March writes in its report, because combined ratios are down due to the rising frequency and severity of Auto losses.

3. More Mergers

Coming on the heels of the ACE/Chubb and XL/Catlin mergers, other insurers will look to create synergies. Some carriers will shut down unprofitable lines or consolidate expenses to diversify capital. Mega-mergers are possible, and Marsh predicts that larger insurers will look at acquiring specialty carriers to round out their niche products and services.

4. An Individual Approach

Insurers will underwrite on an account basis, as opposed to a portfolio approach this year, Marsh says, in order to target profitable business and better identify adequate renewal rates. Carriers will scrutinize risks more closely—through data analysis—to ensure underwriting profitability. Risk will play a larger part in renewal terms, as well as increased participation among client personnel.

5. Multiple Platforms

A combined casualty approach will benefit clients, improve pricing and prevent coverage gaps, Marsh says, and insurers who can make underwriting decisions across multiple products—including primary, excess and international—will remain ahead of competition.

6. On-demand Economy

The sharing economy is changing the traditional definition of employee, which creates challenges for employers and insurers. Personal and commercial coverages will need to be reconciled as clients look to this new way of doing business. Marsh says to expect court cases and litigation to play out on this topic in 2016.

7. Liability Claims

Expect litigators to focus on new areas on behalf of claimants this year, including traumatic brain injury, police brutality and post-traumatic stress disorder. Marsh theorizes that this is because Auto liability claim settlements and labor law actions have been costly for insureds, and they will need to focus on other loss mitigation techniques to minimize expenses.

8. Get Smart

Technology embedded in devices such as glasses, watches, vests and hard hats will become more prevalent in Workers' Compensation injury prevention. Look to these devices to also capture data that will be used to make changes to work sites and safety and loss control programs.

9. Social Tools

Claims investigators will increasingly turn to social media profiles to determine fraud cases.

10. Drones

Insurers must decide if unmanned aerial systems—drones—should be covered under Aviation, Technology or General Liability policies, as the use of drones will continue to climb this year, for both personal and commercial use, Marsh says.