Navigating the world of insurance rates can feel a bit like watching the tides, but we’re here to help you make sense of the latest Property & Casualty (P&C) trends so you can feel confident about your coverage.
As we move into November, the P&C insurance market continues to stabilize in certain areas while maintaining vigilance over critical lines. Here’s a summary of what to expect for your upcoming renewals.
Property & Homeowners: The Long Shadow of Catastrophe
While the Atlantic hurricane season officially winds down, its financial impact casts a long shadow into November renewals. Carriers remain acutely focused on catastrophe exposure, especially along the Gulf Coast.
- Underwriting Focus: Insurers are highly focused on property valuation. With inflation pushing up replacement costs, they are ensuring policies reflect the actual cost to rebuild today, which may lead to firm pricing or necessary increases to avoid underinsurance.
- Mitigation Rewards: The market continues to reward proactive clients. Showing documentation of home improvements (like new roofs, storm shutters, or secured fuel tanks) can be a significant factor in securing favorable renewal terms.
Casualty Lines: Consistency and Cost
The casualty market has largely settled into a pattern of firm pricing, driven by ongoing economic and social factors.
- Commercial Auto: This line remains challenging. Rates continue an upward trend due to the high cost of vehicle technology and repairs, coupled with persistent litigation trends. Businesses should expect continued scrutiny and modest rate increases, especially those with adverse loss history.
- General & Excess Liability: Driven by social inflation (large jury verdicts), underwriters are maintaining discipline, particularly in the excess layers. While increases may be stabilizing, renewal rates will remain firm to ensure carriers can withstand future high-severity claims.
- Workers’ Compensation: This remains the market’s steady bright spot. Favorable trends in workplace safety and strong industry performance mean that most employers can still anticipate competitive rates, often remaining flat or seeing slight reductions.
Key Takeaway for November
The message for November is optimization. This is the perfect time to review your policy aggressively before the year-end rush. Ensure your property replacement costs are accurate and ask your agent about increasing deductibles or bundling policies to manage premium increases.
At Parkway Insurance Group, we believe caring makes the difference by helping you get ahead of your renewal process and secure the best possible coverage. Contact us today at +1 (281) 558-1991 or email us at info@parkwayinsurancegroup.com.
Sources and Industry References
The insights provided are compiled from the following industry-leading reports and organizations:
- Swiss Re Institute: Global analysis and reporting on the financial impact of natural catastrophes (e.g., sigma reports). Source Link
- WTW (Willis Towers Watson): Reports on commercial insurance trends and pricing realities. Source Link
- AM Best: Market segment outlooks and financial ratings for the Commercial Auto sector. Source Link
- CIAB (Council of Insurance Agents & Brokers): Quarterly reports detailing pricing and market capacity in commercial casualty lines. Source Link
NCCI (National Council on Compensation Insurance): Provides key data and trends related to the stability and pricing of Workers’ Compensation. Source Link
