What’s happening in the US commercial insurance landscape?
What’s happening in the US commercial insurance landscape? | Insurance Business America
Insurance News
What’s happening in the US commercial insurance landscape?
New trends marked by competitive shifts
Insurance News
By
Althea Javellana
The U.S. commercial insurance sector is seeing increased competition among insurers, leading to the creation of more stable and predictable renewal outcomes for policyholders, according to the latest Lockton Market Update.
Published quarterly by Lockton, the largest independent insurance brokerage, the report analyzes the commercial property and casualty market trends in the US. The June edition offers insights into the economic and geopolitical shifts affecting the insurance sector, the significant transformation in the property insurance landscape after five challenging years, and the state of marine insurance following the significant infrastructure incident at Baltimore’s Francis Scott Key Bridge.
Mark Moitoso, Lockton’s risk practices Leader, commented on the trends: “Three months ago, we predicted a shift towards a more competitive property and casualty insurance marketplace. We are now witnessing these changes, benefiting the buyers of commercial insurance.”
Moitoso added that the property market is stabilizing, liability pricing is becoming more predictable despite increases, and conditions are improving in workers’ compensation, directors and officers liability, and cyber insurance sectors.
The report also discusses the ongoing challenges in the industry. It highlights the persistent threat of climate change for property insurers and points to social inflation—a steep rise in civil litigation settlements—as an enduring concern.
Here are some critical observations from the update:
The property insurance market is increasingly accommodating buyers with more favorable terms.
Workers’ compensation is highly profitable for insurers, resulting in competitive rates for clients.
Liability insurance rates are rising but are becoming more predictable.
Premiums for crucial lines like directors’ and officers’ liability and cyber insurance are decreasing.
The update encourages buyers to reassess their risk tolerance, explore alternative risk solutions, and strengthen relationships with insurers for better outcomes.
Moitoso emphasized the importance of staying informed about the evolving risk management landscape to secure optimal results in insurance programs.
For further insights, access the full Lockton Market Update here.
Do you have any thoughts on this report? Drop a comment below.
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