The insurance market continues to soften, with premiums rising across the board but at a slower pace than in the first half of 2024. Some lines such as Workers Compensation, Cyber, Directors & Officers and Employment Practices Liability saw premium declines this quarter, while others including Commercial Auto and Commercial Property, are still experiencing increases.
Explore what’s affecting risk and insurance decisions and outcomes for your business by downloading the full 2024 Fall Commercial State of the Market report.
Commercial Property
The Commercial Property insurance market has experienced notable stabilization in 2024, following a tumultuous 2023. The first two quarters of 2024 saw increases of 10.1% and 8.9%, respectively. This is lower than the 11.8% increase of Q4 2023 and the 17.1% increase of Q3 2023. While rates have continued to rise, the pace has slowed considerably, with coastal locations seeing potential increases of up to 10% and non-coastal areas experiencing increases of 5% or less.
Several factors have contributed to this stabilization, including corrected valuations, higher rates, improved modeling techniques, and slowing inflation. However, single carriers remain selective due to relatively unchanged reinsurance rates and attachment points. This has increased the demand for shared and layered programs, which have seen greater carrier participation and capacity.
Recent severe weather events, such as Hurricane Helene and Hurricane Milton, have highlighted the growing unpredictability of natural disasters. Wildfires continue to pose a significant threat, with thousands of acres burned annually. Carriers are now modeling wildfires similar to hurricanes, recognizing their increasing frequency and severity.
Cyber Liability
The Cyber market has remained relatively stable in 2024, with increased capacity and new entrants fostering competition. Renewal pricing continues to be influenced by factors such as revenue, claims history, mergers and acquisitions activity, and cyber controls. While the market has become more favorable for buyers, cyber threats like ransomware, business email compromise and social engineering remain prevalent.
Industry Spotlights
Our report delves into the specific risks and challenges facing various industries, offering strategies to mitigate these complex and unique exposures.
- Architects & Engineers – The market is currently stable, but carriers are attempting to increase rates. Capacity is becoming more restricted.
- Construction – Automobile, Lead Umbrella and Excess Liability policies remain key focus areas for contractors.
- Education – New Title IX regulations and antitrust issues present hurdles for the education industry. In addition to these emerging risks, the hard insurance market, abuse/molestation, student & employee mental health, operation pressures and business continuity pose ongoing challenges.
- Healthcare – The core risks facing the healthcare industry have remained largely unchanged in the last quarter of 2024. Nuclear verdicts, cyberattacks, workforce shortages, abuse claims and workplace violence continue to be significant challenges.
- Real Estate – The market is showing signs of improvement, with positive headlines emerging. However, the market remains fragile, and securing favorable renewal terms requires careful risk assessment and broker collaboration.
Reach Out to an Advisor
Unison Risk Advisors continuously observes trends that impact your organization and offers a comprehensive range of insurance solutions to meet your specific needs. Our experienced team can provide guidance, risk assessments and tailored insurance programs to help your business mitigate risk and secure optimal coverage.