What's happening in the US commercial insurance industry? | Insurance Business America Insurance News What's happening in the US commercial insurance industry?
Changing competition signals new trends
Insurance News
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According to the latest Lockton Market Update, increased competition among insurers is occurring in the U.S. commercial insurance sector, resulting in more stable and predictable renewal outcomes for policyholders.
Published quarterly by Lockton, the largest independent insurance brokerage, the report analyzes trends in the commercial property and casualty insurance markets in the U.S. The June edition offers insights into the economic and geopolitical changes affecting the insurance industry, significant changes in the property insurance industry after a challenging five years, and the marine insurance landscape following a major infrastructure incident at Baltimore's Francis Scott Key Bridge.
Mark Moitoso, risk practice leader at Lockton, commented on this trend: “Three months ago, we were predicting a shift toward a more competitive property and casualty insurance market. Now, we are seeing this change firsthand, benefiting commercial insurance buyers.”
Moitoso added that the real estate market is stabilizing, liability pricing is becoming more predictable despite increases, and conditions are improving in the workers' compensation, directors and officers liability and cyber insurance segments.
The report also covers the current challenges facing the industry, highlighting that climate change is a constant threat to property insurers and noting that social inflation – the rapid increase in civil litigation settlement amounts – is a persistent concern.
Here are some key observations from this update:
The property insurance market is increasingly receptive to buyers on more favorable terms. Workers' compensation insurance is highly profitable for insurers, resulting in competitive rates for customers. Liability premiums are rising but becoming more predictable. Premiums for important lines of insurance such as directors and officers liability and cyber are falling.
The update encourages buyers to reassess their risk tolerance, consider alternative risk solutions and strengthen relationships with insurers to get better results.
Moitoso stressed the importance of staying informed about the evolving risk management landscape to ensure optimal outcomes in insurance programs.
For further information, read the full Lockton Market Update here
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