As we reflect on 2024, Property & Casualty Insurance experienced a dynamic landscape shaped by advanced AI, natural catastrophe trends, and shifting capacity. Below are some highlights from USI Insurance Services’ 2024 Property & Casualty Market Outlook:
Property: Rising CAT Losses And Evolving Underwriting
• Natural catastrophe losses continue to increase by 5% to 7% annually
• Technology, particularly AI, is driving more automated underwriting decisions
• Lender requests are adding complexity and creating coverage challenges
General/Products Liability: Moderation Fuels Options
• Flat to 5% rate increases are projected
• Many organizations are turning to loss-sensitive programs for cost control
Auto: New Capacity Amid Rate Pressures
• Insurers continue to push for rate increases
• Fresh capacity from telematics-based programs provides options, even as some carriers exit difficult markets
Umbrella/Excess: Limited Increases And Expanded Limits
• 5% to 15% rate increases are anticipated
• Increased limit offerings of $15M to $25M boost coverage options
Workers’ Compensation: Competitive Environment
• Most buyers should see stable or lower rates in 2024
• Both guaranteed cost and loss-sensitive programs remain attractive and price-competitive
Cyber: Heightened Threats And Stable Rates
• Ransomware and business email compromises are increasingly intertwined
• Renewals are holding steady at flat to +15%, with similar levels expected for 2024
Directors & Officers (D&O): Favorable Outlook
• Public company D&O rates predicted to be flat to down 7.5% in early 2024
• Ongoing moderation may offer significant cost savings for buyers
Maximizing Your Organization’s Potential
• Leverage risk control strategies to present accounts favorably to insurance carriers
• Utilize every tool to ensure accurate asset valuation in line with industry standards
• Seize opportunities to positively influence costs, coverage, and overall risk quality
Read the full 2024 Property & Casualty Market Outlook for a deeper look at these and other emerging trends.