The insurance market is regularly undergoing transitions, impacted by larger market and economic trends. In this mid-year market update, we delve into the pivotal trends driving these changes, alongside the opportunities and challenges that await. By grasping these developments, leaders can make informed strategic decisions for the future.
COMMERCIAL RISK
The commercial insurance market is seeing a mix of stability and fluctuations. More capacity entering the property market is helping to lower rates for non-catastrophe exposed properties. Other lines that are flat or even potentially trending downward include:
- workers’ compensation
- cyber insurance
- D&O insurance
There are also sectors still feeling the pressure due to the increased severity and frequency of claims. Lines that are facing continued pressure and are in an increasing rate environment, include:
- commercial auto
- high-hazard excess casualty
- habitational property depending on the risk
The market conditions driving these trends include:
- economic and social inflation
- rising litigation costs
- specific industry challenges such as vehicle repair cost inflation and driver shortages
Navigating these dynamics requires strategic management of exposures, especially in high-risk areas. As always, the Kapnick commercial risk team stands ready to help you strategize and navigate this ever-changing market.
BENEFITS
Employer-sponsored health plans are continuously evolving to address the rising costs and complexities of healthcare. Employers should prepare for significant cost increases driven by higher provider fees and escalating pharmacy expenses. The increase in pharmacy costs is fueled by:
- specialty medications
- new gene therapy treatments
- diabetes and obesity treatments like GLP-1 drugs
Major insurers are predicting double-digit renewal rate increases based on their 2024 performance projections.
A proactive and well-informed approach to employee benefits management is essential for employers striving to manage and contain growing health plan costs. The goal is to provide a competitive benefits package while controlling expenses and mitigating risks. The Kapnick benefits team is here to help you.
HOW KAPNICK CAN HELP
At Kapnick, our passion lies in delivering insights that empower our clients to proactively plan for their insurance and benefit renewals to obtain the best results possible in a challenging market. We provide this mid-year to help you navigate current trends and anticipate future challenges, ensuring your commercial risk and employee benefit programs deliver exceptional value and distinguish you in a crowded and competitive market.
Our teams are dedicated to helping you manage rising costs with solutions that fit your unique situation, including the traditional market or alternative funding options. We believe strongly that our clients take a proactive approach to risk management and offer a range of services, including:
- Risk and data analytics
- Advanced modeling
- Safety and loss control surveys
- Claims advocacy
- Benchmarking
- Funding analysis
- and more!
Whether you seek the best risk retention and mitigation strategies or aim to attract and retain top talent, we are here to support your success in 2024 and beyond.
To access the full mid-year market update, simply reach out to your Kapnick representative or provide a few details and we’ll get a copy sent to your shortly.
