Interest rates continue to drive strong investment income for insurers. Nevertheless, the effects of social and economic inflation continue to accumulate, adding pressure to insurers’ liability reserves and pricing. How much this impacts 2024 remains to be seen, but additional scrutiny around risk selection and program structure is expected. In this dynamic environment, tailored analytics and creative program design are now table stakes for insurance buyers.

Lockton Market Update

March 2024

Are We at a Tipping Point?

Despite facing some continuing challenges — including social inflation and climate change — insurers are coming off one of the best earnings seasons in recent memory. Commercial buyers should see greater order during 2024 renewals than they have at any point since before the pandemic. And the market could be at a tipping point toward greater predictability.

The challenge — and opportunity — for buyers is to think strategically by asking difficult questions.