US commercial insurance market conditions favour buyers despite uncertainty: Lockton

According to the latest Lockton Market report, US commercial insurance market conditions favour buyers across most lines of coverage, however, a sense of uncertainty in terms of both the economy and the insurance marketplace looms over the industry.

Despite overall favourable conditions, liability remains a significant exception with loss costs continuing to rise across virtually all liability lines. Despite the rate climb, conditions are still generally predictable for buyers.

These conditions have sparked renewed interest in alternative risk strategies, the quarterly report disclosed how alternative risk products are becoming a key component of many risk financing programs and can offer significant value for organisations seeking to manage costs and volatility more effectively.

Lockton’s report sheds light on US economic conditions, post-election priorities to watch, emerging risks, and strategies for effective crisis management planning and incident response.

Mark Moitoso, Lockton’s Risk Practices Leader, commented: “We’re seeing generally favourable market conditions, some of the best we have seen in the last five years, and with insurers reporting strong profits, there’s reason for continued optimism.

“However, a large, unexpected event could end this stable and predictable market, so it’s critical to be mindful of the uncertainty ahead when evaluating your insurance program.”

Some of the key takeaways from the report include insurers keeping a close watch economy and geopolitical landscape, with the backdrop of property conditions improving, to the benefit of buyers.

Workers’ compensation remains competitive, while reserve redundancies help offset pressure in third-party liability. As social inflation continues to impact attachments, limits, and rates across third-party liability lines, insurers are carefully watching loss trends and reserve adequacy, disclosed the report.

Lastly, there seems to be a strong capacity that continues to fuel a buyer-friendly directors and officers liability (D&O) market, especially public companies. Meanwhile, cyber pricing continues to decline, even as concerns grow about accumulating losses.

Moitoso concluded: “The commercial insurance market is much like a living organism – constantly evolving in response to the experiences of insurers.

“By staying informed of market shaping trends and emerging risks, businesses can make smarter decisions, implement more effective risk management strategies, and better protect their people, operations and finances.”

This website states: The content on this site is sourced from the internet. If there is any infringement, please contact us and we will handle it promptly.