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Fluctuating Insurance Marketplace Continues to Present Challenges
Explore HUB’s detailed rate forecast.
Business
Outlook Q3 Rate Report
The insurance market is in flux, with rates increasing in many lines of coverage.
The extreme weather events of 2023 continue to drive property rates upward. Increased claim frequency and severity, elevated natural catastrophe activity and supply chain delays are also contributing to rate increases.
With disasters increasing in geographic scope and severity — including unprecedented wildfires in all provinces and a once-in-a-thousand-year flood in Nova Scotia — underwriters are carefully scrutinizing exposures and cautiously deploying limited capacity.
Commercial auto premiums also continue to accelerate, albeit at a slower pace. The line continues to experience some inflationary claims costs and supply chain pressures that will drive up rates between 5% and 10%.
Cyber, too, remains elevated, with many businesses expected to see increases of 10% at renewal. However, the line is showing signs of stabilizing, and companies able to demonstrate a strong security posture could see rates flatten or decline as much as 10%.
Canadian companies without adverse claims history or financial challenges also will benefit from flat to decreasing directors and officers (D&O) insurance.
Canadian companies without adverse claims history or financial challenges also will benefit from flat to decreasing directors and officers (D&O) insurance.
Creating an effective risk management strategy requires an understanding of fluctuations in the insurance market. HUB’s Third-Quarter Rate Report provides detailed rate forecasts based on proprietary insurance premium data to help guide you through your 2024 insurance renewals.
Start renewals early.
For a traditional renewal, plan to start the process 120 to 150 days out. Be sure to provide carriers with detailed information on any upgrades to property or equipment, changes to organizational structure, newly identified risks and claims information. Failing to provide information could negatively affect your risk profile and lead to higher premiums.
Improve the resiliency of your properties.
Review commercial auto exposures.
Don’t forget about cyber.
Review commercial auto exposures.
Don’t forget about cyber.
Start renewals early.
Evaluate your property risks and consider technological upgrades to reduce exposures, such as water sensors, sump pumps, electrical backups and outdoor property improvements to reduce damage from wildfires, erosion and flooding. Completing a business insurance worksheet may provide a better picture of exposures and how they can be mitigated. Provide insurers with data that shows your properties are best-in-class risks and deserving of better terms and rates.
Improve the resiliency of your properties.
Discuss strategies to reduce premiums with your broker, such as shouldering more risk by increasing deductibles or implementing technologies such as telematics. Be prepared to share your risk management program with underwriters to obtain the best coverage and pricing.
Review commercial auto exposures.
Start renewals early.
Improve the resiliency of your properties.
Don’t forget about cyber.
Cyber is becoming increasingly more affordable, but don’t become complacent. Be sure you are consistently training employees on how to identify scams, regularly upgrading protective tools and reviewing your incident response plan at least annually.
Don’t forget about cyber.
Start renewals early.
Improve the resiliency of your properties.
Review commercial auto exposures.
Manage your risk to improve attractiveness to insurers
The insurance marketplace is improving, but owners and operators may still see elevated rates in many lines of insurance at renewal. To reduce your total cost of risk, take the time now to implement these best practices:
Work in partnership with your broker.
Always consult your insurance broker before purchasing a commercial building or building a new one, even in the concept development phase. It’s essential to understand the risks and to leverage risk advisors’ experience to identify exposures and develop risk mitigation plans. Your broker can show how to make your properties more attractive during both the construction phase and for the lifetime of the asset and find the right insurance with the best possible terms and price.
Work in partnership with your broker.
Start renewals early.
Improve the resiliency of your properties.
Review commercial auto exposures.
Work in partnership with your broker.
Work in partnership with your broker.
Work in partnership with your broker.
Don’t forget about cyber.
Business Insurance
When you partner with HUB, you're at the center of a vast network of experts who will help you reach your goals. Download our Rate Report to learn how you may be affected by today's insurance rates and how it may impact your total cost of risk.
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Insured losses from summer wildfires likely to be between
more for coverage.
$700M and $1.5B
Swiss Re Institute, “A perfect storm,“ March 22, 2023.
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Source: Canadian Underwriter.