Alera Group’s newly released study forecasting 2024 market conditions in the property/casualty insurance industry reveals the predicted highs and lows for the insurance marketplace. While there are positive signs – including new capacity coming into the marketplace – unprecedented industry losses and unprofitability in Homeowners and Auto Insurance will significantly impact pricing and availability, especially in catastrophe-prone areas and states with challenging regulations.
In its fourth annual Property and Casualty Market Outlook, Alera Group provides a strategic look into the challenges the insurance market is experiencing and interprets the emerging trends, challenges and opportunities in the coming year.
Alera Group examines the market by industry and lines of coverage, enabling readers easy access to the information most relevant to them. Insights and advice come from a survey of Alera Group experts throughout the nation and from its carrier partners
Key highlights from the 2024 P&C Market Outlook:
- Prices rising: Buyers will likely see price increases in all lines except Public and Private Directors and Officers Liability (D&O) and Workers’ Compensation. Markets anticipate the most significant rate increases (10-15%) will be in Commercial Property, Commercial Auto and personal lines.
- Varying capacity: More than 20% of respondents see capacity increasing in Public and Private D&O, Environmental Liability, Surety Bonds and Workers’ Compensation. Twenty percent or more of respondents see capacity decreasing in Commercial Auto, Commercial Property, Environmental Liability, Medical Malpractice and personal lines/private risk.
- Stricter underwriting: Underwriters will continue to be selective in the accounts they write. Over 20% of participants anticipate more rigorous standards in Commercial Auto, Medical Malpractice and Umbrella/Excess Liability. Requirements are expected to ease around Private and Public D&O, Employment Practices Liability, Surety Bonds and Workers’ Compensation.
“The dynamic shifts detailed in our Property and Casualty Market Outlook underscore the need for a high-level risk management strategy and executive-level engagement in navigating the complexities of the insurance landscape,” said Mark Englert, Alera Group Executive Vice President and P&C Practice Leader. “As we anticipate challenges, particularly in the face of projected price increases in key areas such as Commercial Auto and Commercial Property, our unwavering commitment is intensified.
The full 2024 P&C Market Outlook is available for download on the Alera Group website. For inquiries, contact a local Alera Group office or email info@aleragroup.com.