For the past few years, many businesses have faced economic pressures that have cut profits. The pandemic and supply chain crisis has contributed to this uncertainty. One of the ways to keep financial losses under control is to be equipped with the right insurance. In 2023 commercial property owners must assess their property & casualty risk management and insurance.
The market for property & casualty risk management and insurance is growing due to increasing business risks. The pandemic peaked in 2022 and was mitigated with the massive vaccine rollout, but there are still risks of further outbreaks.
The commercial lines market consists of insurance firms that cover business risks. Commercial property insurance and general liability are the two main types of commercial lines. In late 2022 rating agency, AM Best announced that the pandemic's impact on commercial lines was diminishing. The agency still warned about headwinds in 2023 that could lead to increased litigation and inflation. Overall, the agency characterized the commercial lines market outlook as "stable."
Spikes in commercial line rates have been reduced since the fourth quarter of 2020. Continued rate increases at the pace of a few years ago are less likely in 2023. But even as rates flatten with increased competition in the market, insurance companies will likely still grow their needs due to rising business risks. Cyber liability insurance is expected to see growth due to increasing cyber threats.
Commercial insurance buyers can get reasonable rates by working with brokers who have established relationships with reputable insurance underwriters. Giving clients tips on reducing risks helps build trust, renewals, and fewer claims.
Since 2021 there's been an infusion of underwriting capital surpassing $100 million in the United States casualty insurance market. That helps insurers mitigate the many casualty claims related to social inflation. Any business that operates in public has the potential to file a casualty claim, so it's advantageous to stay on top of the financial protection that casualty insurance provides. Since rates can rise, it's best to monitor them.
It's a good idea for commercial property owners to assess their property & casualty risk management and insurance routinely. Ask yourself how protected your business is from all the new disasters in recent years. Contact us today at GrayStone Insurance Group to learn more about reducing casualty risks for your business.