The timing of the hard market is not a mere coincidence but a result of a convergence of factors that continue to impact families and their family offices. Over the past 7-10 years, the United States witnessed a surge in extreme weather events, from unprecedented floods, to devastating wildfires.
Simultaneously, the rise of cybercrime and the unsettling trend of social inflation have further compounded the challenges faced by family offices. These multifaceted factors, among others, have contributed to the current hard personal insurance market, creating a dire cost situation for family offices. But there is hope.
Our Family Office Benchmarking Study equips you with the knowledge and insights necessary to navigate these turbulent waters and safeguard what matters most.
Unveiling the forces behind the hard market
Rising inflation
Technology advancements
Aggregation
impacts
Supply chain
disruptions
Climate change
and natural
disasters
Industry regulations
Rising
reinsurance
costs
Social
inflation
Nuclear
verdicts
The findings of this year’s Benchmarking Study paint a stark picture of the challenges faced by family offices. A staggering 71% of families experienced a rate increase of 20% or more in the past two years, while nearly one in three (31%) have encountered non-renewals of their property coverage.
These extreme circumstances have forced a remarketing of assets with other carriers, many of them being non-admitted insurers. The personal insurance market is facing one of the most volatile and challenging situations in a generation.
Exploring the impact of the hard market
on family offices
71%
experienced significant
premium increases
of 20%+
experienced policy
non-renewals
31%
In the face of rising insurance costs, families are compelled to take decisive action to protect their financial well-being. Many have made the difficult decision to assume greater risks in order to reduce premiums. These actions include limiting their coverage, increasing their deductibles, foregoing insurance, or creating a captive solution.
Guiding family offices:
Taking action in the face of rising costs
Moving to higher
deductible coverage
Moving to a policy with
more limited coverage
Not buying
insurance
Captive
structure
39%
34%
26%
18%
11%
13%
26%
8%
Implemented
Considered