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.
Improved Profitability Fuels Competition
Despite continuing concerns about natural catastrophe losses, social inflation, and geopolitical uncertainty, insurers are reporting strong returns and are increasingly competing for business across a number of lines. The result: greater stability and predictable renewal outcomes. For buyers, it’s essential to continue to challenge existing thinking, rather than simply renewing insurance programs as is. Now is the time to revisit past assumptions, reexamine limit adequacy, and capitalize on safety and risk mitigation investments.