The commercial insurance world has been dealing with a hard marketplace since 2019, resulting in higher rates and more stringent underwriting standards for business owners in practically every corner of the economy. As we’ve noted in past forecasts, the increased frequency and severity of claims, growing social inflation, cyberthreats and worsening natural disasters have all contributed to the problem.
Looking ahead, we expect the commercial insurance landscape will remain challenging and that the likelihood of a softening of the market in 2024 remains remote.
Why? Well, although 2023 saw the federal government mark the end of the COVID-19 Public Health Emergency, this past year saw the continuation of supply chain disruptions, labor shortages, economic pressures and inflation struggles.
Complicating matters further, certain geopolitical events (e.g., the Russia-Ukraine conflict and Israel-Hamas war), advancements in artificial intelligence (AI) and a fluctuating reinsurance market have only exacerbated companies’ commercial exposures.
Commercial property and auto coverage, we expect, will most likely remain difficult to navigate in the year ahead.
As we’ve noted before, these trends make it essential for businesses to take a proactive approach to bolster their risk management efforts if they hope to secure adequate and the most affordable coverage available.
We are, as always, here to provide the risk management solutions and coverage expertise your business needs.
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2024 Commercial Insurance Report and Forecast
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