Current insurance market conditions and what you can do to achieve an optimal insurance program
The good news is that, for most insureds and lines of Coverage, it remains a buyers market despite the number of particularly destructive Hurricanes in 2017. The exception is Automobile Insurance where Insurers have lost money for 5 straight years. As a result, many are experiencing increasing Premiums for Automobile Coverage. The bad news is that this generally favorable condition can quickly change if one event or series of events significantly depletes Industry Surplus. Attritional losses, which are defined as losses other than major losses, are getting easier to forecast and therefore improves Insurers ability to accurately price their Coverage. However, Black Swan Events, man-made and natural catastrophes and emerging issues, some heretofore unanticipated, render accurate pricing a somewhat elusive goal. Examples of new and emerging issues include cyber-attacks, acts of terrorism, escalating medical cost inflation and more comorbidity cases, an increase in the frequency and severity of severe storms, increased property development in areas susceptible to windstorm, flood and earthquake perils, an aging workforce, distracted driving and an erosion of common law defenses in many jurisdictions.