Deerfield, IL (September 6, 2023) – An analysis updating Alera Group’s 2023 Property and Casualty Market Outlook finds the industry is experiencing both stability and challenges. There is less volatility, with prices moderating and coverage stabilizing across most lines of business. However, the one exception is Property Insurance, where inflation and natural disasters continue to impact reinsurance costs. In fact, in the first half of this year, the P&C industry experienced the highest catastrophe losses through natural disasters in more than two decades.
Key findings include:
- The average price increase is 8.3% across all lines, and there have been 23 consecutive quarters of rate increases.
- Natural catastrophe exposure remains tight, and insurers are reserving capacity for clients investing in risk mitigation measures.
- Underwriters continue to emphasize proactive risk management, loss reduction and thorough submissions.
- Projections indicate that the industry will gradually improve its net combined ratios, aiming to return to a small underwriting profit by 2025.
"In the ever-evolving landscape of the insurance industry, knowledge is the key to resilience,” said Mark Englert, Executive Vice President and National Property and Casualty Practice Leader at Alera Group, one of the nation’s top-ranked insurance and wealth services firms. “Building strong relationships with underwriters, sharing information and demonstrating effective risk management are not just strategies; they're the anchors of success in this ever-changing climate."
The update provides a comprehensive analysis of market conditions in various lines of Property and Casualty coverage, including Commercial Auto, Commercial Property, Cyber Liability, Directors and Officers, Employment Practices Liability, Environmental, General Liability, Medical Malpractice, Personal Insurance, Professional Liability, Surety, Umbrella/Excess Liability and Workers' Compensation.
The update is available for download on the Alera Group website. Contact a local Alera Group office or email info@aleragroup.com with questions and requests for assistance.
About Alera Group
Alera Group is an independent, national insurance and wealth services firm with more than $1.2 billion in annual revenue, offering comprehensive employee benefits, Property and Casualty Insurance, retirement plan services and wealth services solutions to clients nationwide. By working collaboratively across specialties and geographies, Alera Group’s team of more than 4,000 professionals in more than 175 locations provides creative, competitive services that help ensure a client’s business and personal success. For more information, visit aleragroup.com or follow us on LinkedIn.
