Market Insights from Kapnick Insurance
The business insurance marketplace in 2022 continues to face challenges, though there is good news on the horizon—the rate of increases has slowed across almost all lines and we hope to see rates softening as we move into 2023. The cause of the hard market that businesses continue to face is multi-faceted, including:
- A shortage of goods
- Inflation on the cost of goods and services
- Economic uncertainty
- Catastrophic events leading to increased frequency or severity of claims
- Global events such as the COVID-19 pandemic and the war in Ukraine
Overall, we expect rates to continue to increase through the end of the year but at a lower percentage than what has been experienced over the previous 18 months. Capacity will slowly begin to increase in some coverage lines but remain challenging in the excess/umbrella liability space.
In employee benefits, a lack of skilled labor as well as the Great Reshuffling—also known as the Great Resignation, where employees are leaving their jobs in record numbers for other roles, have created difficulties for employers. Proactive organizations are evaluating their employee benefits offerings in order to attract and retain top talent. While salary, job security, and health benefits are essential components, some of the most valuable employee benefits include annual leave, a positive culture, and flexibility.
Learn more about the current market by reading our 2022 Mid-Year Market Forecast below and find out how Kapnick can help:
