The year 2024 marks an important moment for businesses and their insurance programs. After seven years of fluctuating insurance rates, markets are experiencing signs of sta-bilization. The second quarter of this year showed steady rates—an occurrence not seen in the past seven years, according to the Marsh Global Market Index. While this indicates that some lines of coverage are finding balance, other markets remain under pressure. These include the property insurance market, the auto market, and the medical professional lia-bility market.
In this environment, it’s advisable for organizations to reassess their risk management strategies to determine that carrier partnerships, limits, retentions, and premiums are aligned with your business objectives. Below, we explore several factors to consider as you prepare to manage your insurance program in 2024.
PROPERTY INSURANCE
For the first time in seven years, the prop-erty insurance market is showing signs of stability. After several years of rate increases, 2024 is seeing an average rate increase of 11%. This is below what has been seen in the past seven years. However, properties with high exposure and substantial loss histories may still experience increases of 50 to 100%. This gen-eral drop in rates can present an opportunity for businesses to assess their risk profiles and focus on key coverage areas such as business interruption values, which must be calculated accurately for optimal protection.
The renewed stability in the property market does not come without challenges. Severe weather risks continue to be a major concern, particularly in regions like Southern California, which recently faced devastating wildfires. These natural disasters highlight the importance for organizations to evaluate their catastrophe risk assessments and adjust their insurance programs accordingly.
To mitigate the potential impacts of property market instability, the following includes examples of areas for businesses to…
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