As summer 2020 comes to an end, “uncertainty” remains the watchword for both the U.S. economy and the property and casualty industry. The resurgence of the COVID-19 virus in states that power the U.S. economy (Texas, Florida, California and Illinois) threaten livelihoods and raise fears of a second, nationwide shutdown. At a minimum, many businesses are seeing increased operating restrictions, uncertain supply chains and reduced demand.
The National Bureau of Economic Research (NBER) officially declared the U.S. to be in a recession, starting in February 2020. This marks the first U.S. recession since the “Great Recession,” which began in December 2007 and lasted until June 2009.
Unemployment rates remain near record levels with nearly 22 million Americans out of work or about 13% of the labor force. Millions more remain in a “work from home environment” as companies struggle to maintain sales and profitability.
We acknowledge the tremendous uncertainty facing our clients and remain actively engaged with them to provide guidance and help find solutions.
Download the August 2020 interim Lockton Market Update (opens a new window) (opens a new window) to learn more and view actionable take-aways to help businesses prepare for and navigate the headwinds of the current market.