What’s happening in the U.S. commercial insurance landscape? | Insurance business America
New trends characterized by competitive changes
Insurance News
By Althea Javellana
According to the latest Lockton Market Update, the U.S. commercial insurance sector is experiencing increasing competition among insurers, resulting in more stable and predictable renewal outcomes for policyholders.
The report, published quarterly by Lockton, the largest independent insurance broker, analyzes trends in the U.S. commercial property and casualty insurance market. The June issue provides insights into the economic and geopolitical changes impacting the insurance sector, the significant shift in the property insurance landscape after five challenging years, and the state of marine insurance following the major infrastructure accident at Baltimore’s Francis Scott Key Bridge.
Commenting on the trends, Mark Moitoso, risk practices leader at Lockton, said: “Three months ago we predicted a shift towards a more competitive property and casualty insurance market. We are now seeing these changes benefit commercial insurance buyers.”
Moitoso added that the real estate market is stabilizing, liability prices are becoming more predictable despite increases, and conditions are improving in workers’ compensation, executive liability and cyber insurance.
The report also discusses the current challenges in the industry. It highlights the ongoing threat of climate change to property insurers and suggests that social inflation – a steep rise in civil dispute resolutions – remains an ongoing problem.
Here are some critical observations from the update:
- The property insurance market is increasingly offering more favorable conditions to buyers.
- Workers’ compensation is extremely profitable for insurers and results in competitive rates for customers.
- Liability insurance rates are rising, but becoming more predictable.
- Premiums for important lines of insurance such as liability insurance for directors and officers and cyber insurance are falling.
The update encourages buyers to reassess their risk tolerance, explore alternative risk solutions and strengthen relationships with insurers to achieve better outcomes.
Moitoso emphasized the importance of remaining informed about the evolving risk management landscape to ensure optimal outcomes in insurance programs.
For more insights, read the full Lockton Market Update here.
Do you have any thoughts on this report? Write a comment below.
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2024-06-28 11:45:50
www.insurancebusinessmag.com
