Businesses across the U.S. have been dealing with a “hard” insurance marketplace — one marked by quarter after quarter of steep rate increases and shrinking capacity – since 2019. The welcome news for the year ahead is that we expect to see a stabilization in rates after a deceleration in rate increases in some lines in 2022.
Does that mean we’re out of the woods, and that double-digit rate increases for some lines of coverage are over? Unfortunately, no.
The increased frequency and severity of claims, growing “social inflation” issues, lasting complications created by the COVID-19 pandemic, widening cyberthreats and worsening natural disasters have fundamentally reshaped the insurance market.
Let’s also not forget the Russia-Ukraine war, lingering supply-chain challenges, rising interest rates and inflation.
As a result, limited capacity, stricter underwriting standards and, again, rising rates for some business policies are all in the picture for the year ahead.
We expect the headwinds facing certain lines of coverage, especially commercial property, auto and cyber, to pose the biggest challenge.
With all this in mind, it’s essential for businesses to bolster their risk management efforts if they hope to secure the most robust coverage possible.
As we’ve done for more than 100 years, The Mahoney Group is here to help you navigate the constantly evolving commercial insurance marketplace, to help ensure you’re properly covered to address your unique risks, and to advocate on your behalf.
You need insurance professionals who can tell your story to insurance carriers in a way that will best position your business come renewal time. You also want insurance professionals on your team who understand the dynamics of the current market cycle and know how to navigate a hard market.
In these challenging times, The Mahoney Group is here to provide the insurance guidance and risk management expertise your business needs.