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.
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.
Lockton Market Update December 2023 (opens a new window)
Lockton Market Update September 2023 (opens a new window)
Lockton Market Update June 2023 (opens a new window)
Lockton Market Update March 2023 (opens a new window)
Lockton Market Update December 2022 (opens a new window)