State of the Insurance Market: Navigating the Evolving Landscape of Commercial Insurance

JANUARY’S MONTHLY RISK MANAGING TIP

STATE OF THE INSURANCE MARKET:

Navigating the Evolving Landscape of Commercial Insurance

As we navigate the dynamic landscape of the commercial insurance sector, it's crucial to stay informed about the shifts and challenges that impact insurance buyers.

Over the last five years, the commercial insurance industry has faced challenging conditions, creating a hard marketplace for insurance buyers. Various factors, including increased claim frequency and severity, social inflation issues, evolving cyberthreats, and worsening natural disasters, have prompted insurance carriers to reassess their positions. Consequently, the market has experienced reduced capacity, stringent underwriting standards, and rising premiums across multiple lines of coverage.

Understanding the cyclical nature of the commercial insurance market is key to making informed decisions. The market fluctuates between hard and soft markets, each influencing the availability, terms, and price of commercial insurance. In a soft market, characterized as a buyer's market, premiums stabilize or decrease, coverage terms broaden, and competition among insurance companies increases. Conversely, a hard market, known as a seller's market, results in increased premium costs, stricter underwriting criteria, reduced capacity, and less competition for new business.

Looking ahead to 2024, our Market Outlook Forecast Trends provide valuable insights based on industry reports and surveys. While these forecasts are subject to change, they offer a general overview of expected rating trends in various lines of insurance:

  • Commercial property CAT-free: +5% to +15%

  • Commercial property CAT-exposed: +15% to +25%

  • General liability: +1% to +10%

  • Commercial auto: +5% to +30%

  • Workers’ compensation: -5% to +2%

  • Cyber: 0% to +15%

  • Directors & Officers private and nonprofit companies: 0% to +5%, Public companies: -10% to +5%

  • Employment practices liability: 0% to +10%

In this volatile insurance marketplace, staying ahead of the curve is essential.  Getting early indications from your current insurance company underwriters can help avoid surprises and allow you time to tailor your insurance program as needed.  Partnering with a proactive industry-specialist broker is key to navigating these market challenges effectively.   

At Cavignac, our unwavering commitment is to elevate the design professional industry by delivering unparalleled value. We strive to empower firms, enabling them to navigate risks with precision and face the future with unwavering confidence. If there's anything we can do to assist you, don't hesitate to reach out. Visit www.cavignac.com or call us at 619-744-0585. 

 
 
 

Thank you to our annual Sustaining partners

T.B. Penick & Sons, Inc.

CONSTRUCTION, DESIGN-BUILD, INNOVATIVE CONCRETE SYSTEMS

It takes an agile company like T.B. Penick to meet today’s aggressive schedules and tighter budgets, offer cutting-edge methodologies such as BIM, advocate best practices and offer safe and sustainable construction practices.

STRUCTURAL ENGINEERING, CIVIL Engineering & land SURVEYING

BWE is dedicated to providing industry leading engineering and professional services through efficient, cost-effective and sustainable solutions that make positive impacts in our community.

LEADING LIGHTINg and controls manufacturer’s representative

We are a forward-thinking lighting agency that offers an expansive line of lighting and controls products from leading manufacturers. At SDLA, we stand behind our products 100% . We respond to your needs quickly, efficiently and accurately to provide onsite assistance to ensure the job exceeds expectations.

Annual Supporting partners

Architecture and Interior Design

Miller Hull has a passion for creating dynamic and environmentally sensitive buildings. It is the essence of the firm and continues to push our work forward.

 

Architecture is a Shared endeavor

We craft innovative solution which enrich programmatic and sensory intent, engage the greater community and achieve tangible success.

unprecedented performance and exceptional aestheticS

Designed in America and manufactured in Europe, INICIO's products exemplify a fusion of exceptional quality, precision, and innovation for residential applications.


lighting industry with innovative products and best in class service. 

Our team is on the forefront of the latest technologies, trends, and requirements meaning our customers are always one step ahead of their competition. We are result and ROI driven, and are passionate about making lighting more than just an afterthought.

Providing Design Professionals with Confidence in the FutureMake it stand out

We’ve served Design Professionals since 1992, with a focused expertise that gives our architectural, engineering, and construction management clients a critical advantage. As the exclusive broker for two of the top A&E insurance companies, we’re experts at negotiating appropriate coverage and competitive pricing.