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.
Property & Homeowners: The Hurricane Watch Continues
As we move into September, the historical peak of hurricane season, the property insurance market remains firm, especially along the Gulf Coast. While some national reports may hint at a moderating market, the reality for Houston and other coastal areas is that carriers are still underwriting with caution. Expect to see continued pressure on pricing, with underwriters closely evaluating a client’s risk profile and hurricane preparedness. For property owners, having your hurricane plan well-documented and your home adequately protected remains a key factor in securing favorable renewal terms.
Casualty Lines: Pressure Persists
The casualty market continues to face headwinds, driven by persistent social and economic inflation.
- Commercial Auto: This line remains particularly challenging. Consistent rate increases are projected, with some carriers reporting double-digit jumps. These hikes are largely due to the rising costs of vehicle technology repairs, increased accident severity, and the impact of large legal verdicts.
- General & Excess Liability: Social inflation is the primary concern here. Insurers are increasing rates to offset the rising costs of large-scale lawsuits. Most businesses can expect to see continued increases in their liability policies.
- Workers’ Compensation: This continues to be the bright spot in the market. A competitive environment and strong historical safety records are keeping rates stable, with many employers seeing flat to slightly decreasing premiums. This line provides a welcome balance to the more volatile property and liability markets.
Key Takeaway for September
The theme for September is proactivity. For property owners, this means confirming your home is prepared for hurricane season. For all businesses, it’s essential to partner with your broker early and get ahead of your renewal process. Starting discussions now can help you navigate the market’s complexities and position your organization for the best possible outcome.
Soures: https://www.mckinsey.com/industries/financial-services/our-insights/global-insurance-report
