Over the last couple of years, evolving technology, increased threat vectors and growing attacker sophistication have driven up the frequency and severity of cyber incidents, causing a rise in cyber insurance claims and subsequent underwriting losses. As a result of this volatile risk environment, most policyholders have faced continued premium hikes. Specifically, industry data found that average cyber insurance rate increases peaked at 34% in the fourth quarter of 2021 and remained in double digits…

The insurance industry and policy-holders have often under-valued the cost of repairing and rebuilding commercial property and structures. The property insurance market has become distressed over the past few years due to the combination of valuation problems, construction inflation, and increased weather-related losses. That has driven insurance companies to ask more thorough underwriting questions, use new technology, and push clients to increase their property values. What does this mean to you? Insurance companies will be…

Prolonged market stability, strong reserves and profitable underwriting results have generated favorable conditions across the workers’ compensation insurance segment for nearly a decade, paving the way for flat premiums or moderate rate decreases for most policyholders. According to the National Council on Compensation Insurance (NCCI), the segment produced a combined ratio of 87 in 2022, demonstrating continued profitability and representing the ninth consecutive year in which the ratio fell under 100. Nevertheless, it’s worth noting…

The commercial auto insurance market has faced hardening conditions for much of the past decade, as evidenced by significant underwriting losses, plummeting profitability and continued rate hikes. Although 2022 saw lower average premium increases due to strengthening reserves and 2021’s combined ratio falling below 100 for the first time in several years, this deceleration wasn’t here to stay. According to credit rating agency AM Best, 2022’s combined ratio jumped back up to 105, representing $3.3…

Rising claim frequency and severity have generated hardening conditions across the general liability insurance segment in recent years, prompting ongoing rate increases, stringent underwriting standards and limited capacity. Fortunately, carriers experienced slightly better underwriting results in 2022-23, paving the way for rate deceleration. In other words, although rates have continued to increase during this time frame, they have done so at a slower pace than in previous years. According to industry data, average premium increases…

The commercial property insurance market has faced rising premiums since 2017. While such rate jumps showed some signs of slowing in 2022 by largely remaining within single digits, this moderation didn’t last in 2023. According to industry data, commercial property insurance premiums surged by an average of 20.4% in the first quarter of 2023 alone, representing the first time the segment has seen average rate hikes above 20% in more than 20 years. In the…