The past few years have been challenging for the insurance industry and the businesses it serves. We’ve borne witness to an increased frequency and severity of claims, runaway jury awards, the COVID-19 pandemic, an explosion in cybercrime, and a string of billion-dollar-plus natural disasters attributed to a warmer planet. All have fueled record increases in insurance rates.
The result in 2021 was a further hardening of those rates, a trend now entering its fourth year. Higher prices weren’t the only challenge. Businesses large and small also faced fewer choices as some carriers pulled back, if not entirely out, of certain lines of coverage and underwriting got stricter, much stricter in some cases.
And while some businesses are now operating at pre-pandemic levels, other businesses continue to struggle to regain their footing amid ongoing supply chain issues and labor shortages.
The second half of 2021 did see a softening in rates for certain lines, a stabilization to be sure. Yet the deceleration was in no way universal. In particular, cyber liability and commercial auto insurance were and are all still in the midst of hardening.
Going into 2022, we expect less drama but overall, a still-challenging insurance environment, especially with new uncertainty created by the latest COVID variant and rising inflation. Rates may be stabilizing but now, more than ever, it’s essential for businesses to take a proactive approach to bolster their risk management efforts.
Of course, you’re not in this alone. To help you navigate the insurance market, you need an insurance professional who understands your business, helps you plan for unique risks and advocates on your behalf.
You also need a team of insurance professionals that can tell your story to insurance carriers in a way that will best position your business at renewal. You need to work with an insurance professional who understands the dynamics of the current insurance market cycle and how to navigate a hard market successfully. Lastly, you need an insurance professional who fully understands your industry and how to provide targeted loss control solutions.
Remember, in these challenging times, The Mahoney Group is here to provide the insurance guidance and expertise your business needs.