2023 Spring State of the Market: Tough Times Ahead with Hope on the Horizon

Apr 6, 2023

The hard market continues as we navigate our way through the first half of 2023. What does this mean for your business? In the short-term, it means continued difficulties in procuring coverages and renewals, as well as expensive premiums when you manage to obtain a policy. Despite these current challenges, there are reasons for long-term optimism.

Insurers and brokers are adapting and innovating in the face of a years-long turbulent insurance market. To take advantage of these innovations along with new competition from insurance carriers to cover new risks, businesses must take a proactive approach to risk management.

Commercial Property

The biggest story in the market right now is undoubtedly commercial property. From rapid inflationary trends impacting valuations to the continued impact of climate change, premiums are beginning to soar, even when compared to the height of the current hard market cycle. According to the Council of Insurance Brokers and Agents (CIAB), rates were on the rise by 16% at the end of 2022 and are expected to continue surging.

General Observations

Cyber Liability

Rates in the cyber liability market are beginning to stabilize, largely due to efforts by companies to increase security protocols, such as using multi-factor authentication, endpoint detection and response, employee training, and backup segmentation.

This has improved underwriting performance, but companies are not out of the woods yet. Cybercrime is on the rise and criminals are becoming more sophisticated, making organizations of all sizes potential targets.

General Observations

Request the Full Report Today!

Want to learn more about the hard market? Request our Spring State of the Market report for an analysis on a variety of property & casualty lines, industry insights and recommendations from our team!