In the three years of its publication, Alera Group’s annual Property and Casualty Market Outlook has received enthusiastic and grateful praise from clients who have come to rely on its insights and guidance in making insurance decisions. The report’s respect within the property and casualty insurance industry as a whole is evidenced by the publication of an article by Alera Group Executive Vice President/Property and Casualty Practice Leader Mark Englert on the industry-leading website PropertyCasualty360.com.
In a February 16 piece titled “2023 P&C Outlook: Assessing the impact of higher rates & greater underwriter scrutiny,” Englert summarizes the Alera Group report’s main findings: “Businesses seeking renewals or new property and casualty insurance (P&C) coverage over the coming year will continue to encounter rate increases and greater underwriter scrutiny as insurers remain guarded due to ongoing economic uncertainty and the major impact of catastrophic weather events on property coverage. Inflation and court-related claims are also contributing to reduced market capacity, leading to increased emphasis on layered insurance coverage and clients assuming more risks going forward …”
Englert also highlights key points from the Market Outlook, including:
- Market conditions vary significantly from industry to industry and region to region, based largely on a client’s location related to catastrophe-prone (CAT) areas and the effectiveness of its risk management program;
- Commercial Property, Cyber and personal insurance are the lines of coverage experiencing the highest rate increases, while Workers’ Compensation market conditions are much more consumer-friendly;
- Capacity and availability vary by service line, with many clients forced to spread risks across carriers and take on more risk themselves;
- Although the P&C market will remain relatively stable in 2023, two sectors facing ongoing challenges and volatility are hospitality and gaming, and nonprofits;
- Insurance buyers can alleviate hard-market conditions by working closely with their agent or broker, by starting the renewal process early and being thorough in their submissions, and by designing and executing an effective risk management strategy.
Regarding that last point, Englert concludes: “The seller’s market is likely to remain for at least the near term. By following these key steps, businesses can ensure they are in the best position to protect their operations and navigate evolving risks in the future.”
In addition to reading Englert’s article on PropertyCasualty360.com, insurance consumers and decision-makers can obtain the full 2023 Property and Casualty Market Outlook here.