Download Report
Fluctuating Insurance Marketplace Continues to Present Challenges
Explore HUB’s detailed rate forecast.
Business
Outlook Q3 Rate Report
The challenging insurance market continues, but business owners will see premium relief in a few lines of coverage.
The extreme weather events of 2022 continue to reverberate in the property insurance and catastrophe peril lines, where businesses can expect to pay 20% to 30% more for coverage. With disasters increasing in geographic scope and severity, more businesses are considering catastrophe peril coverage as part of their risk management strategy. But with underwriters increasing their scrutiny of exposures — and a lack of capacity in the marketplace — those purchasing CAT peril or parametric coverage can expect to pay more.
Commercial auto also continues to accelerate, albeit at a slower pace. Elevated claims frequency and the increasing cost of repairs are driving pressure on pricing, though supply chain bottlenecks felt during the pandemic have eased. Rates for most commercial fleets are expected to rise between 5% and 15% at renewal.
Elevated rates also persist in umbrella and excess lines, with social inflation and rising medical costs driving rates up 5% to 15% — though these rates have fallen from their 2020 peak.
Cyber, too, has significantly leveled out, with many businesses seeing little increase in rates and capacity, and more carriers once again offering robust coverage limits.
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 your 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.
Download Report
The extreme weather events of 2022 continue to reverberate in the property insurance and catastrophe peril lines, where businesses can expect to pay
more for coverage.
20%-30%
Swiss Re Institute, “A perfect storm,“ March 22, 2023.
FR
EN
Canada
US
EN
US
EN
Contact Us
Private Client
Business
Sitemap
Terms & Conditions
Privacy Statement
© 2023 HUB International Limited. 150 N Riverside Plaza, 17th Floor, Chicago, IL 60606. All rights reserved.
Subscribe
Keep pace with the latest trends.
Contact Us
Stay In the Know
Outlook Home
Business
Private Client
Go to HUB site
Head to hubinternational.com
to learn more about us.
Despite these challenges, businesses will see premium relief in some lines. Workers’ compensation continues its reign as the most profitable insurance line, and many businesses will see rates hold or decline. Directors and officers (D&O) coverage, which was seen as troublesome coverage a few years ago, is also experiencing rate declines.