The property insurance market is becoming more buyer-friendly, with increasing competition among commercial insurers helping to create stability and more predictable renewal outcomes for US insurance buyers, according to Lockton’s latest Market Update.
Mark Moitoso, Risk Practices Leader at Lockton, commented, “Three months ago, we anticipated a shift in the P&C insurance marketplace toward greater competition. We’re now seeing these conditions materialise for commercial insurance buyers.
“The property market is stabilising, liability pricing continues to increase but becoming more predictable, and we’re seeing favourable conditions in workers’ compensation, directors and officers liability, and cyber insurance.”
The report notes that while insurers’ current financial performance is positive, challenges remain. Climate change presents a long-term threat for property insurers, and new data suggests that social inflation remains a concern.
Key takeaways from the report include the following: although rates rose in the first quarter, the property insurance market is becoming more favourable for buyers. Workers’ compensation is highly profitable for insurers, resulting in competitive rates for buyers. Liability rates are still climbing, but outcomes are becoming more predictable. Additionally, pricing for key financial and professional lines, including directors and officers liability (D&O) and cyber insurance, continues to decrease.
In this context, buyers should reassess their P&C insurance programs. The report suggests six strategies for the remainder of 2024, such as reassessing risk tolerance, exploring alternative risk solutions, and building strong relationships with insurers to achieve positive outcomes.
Moitoso emphasised, “It’s essential for business leaders to understand the shifting risk management landscape.
“The Lockton Market Update aims to equip business leaders with the latest intelligence on what’s happening in the insurance marketplace, so they can get the best possible outcomes.”
