State of the Insurance Market Report

The insurance market continues to face considerable challenges in catastrophic property and auto lines, which continue to experience historic loss levels. This situation affects the availability of insurance and affordability for clients.

Despite challenges, some insurance lines such as management liability, cyber, and workers’ compensation remain stable. These areas have adequate capacity and consistent rates, particularly for organizations with effective risk management strategies in place and good risk profiles.

Catastrophic weather events are significant drivers in the market, contributing to substantial losses. Additionally, inflation and rising costs, including interest rates and supply chain issues, are impacting overall insurance costs.

There is an upward trend in claims costs, driven by economic factors and social inflation (including higher litigation expenses and nuclear verdicts). Employers also face rising medical expenses, which affect employee benefits programs and require more customized approaches.