2024 Commercial Property & Casualty Market Outlook

Introducing the Commercial Property & Casualty Market Outlook for the year 2024. Within this report, we are pleased to present insights into the current landscape of insurance markets, shedding light on significant emerging developments.

A consistent theme throughout this report is the challenge posed by persistent inflation and economic uncertainties. These factors have led many insurers to adopt a more cautious approach to their pricing models, creating an environment characterized by rising rates. Nevertheless, certain markets exhibit stability in the face of inflation and economic pressures. This juncture demands a strategic focus on thoughtful risk management strategies, requiring early engagement in the insurance renewal process as policyholders contend for available capacity.

Property Sector:

Escalating rates, combined with increased valuations, exert strain on insured budgets. The scarcity of capacity, particularly in areas prone to natural catastrophe risks, will continue to propel pricing upwards. Insured parties are advised to meticulously review data accuracy, quality, and values to mitigate larger premium hikes.

Casualty Sector:

Broadly, we observe more consistent renewals among policyholders who remain with their insurance providers. Rate relief is available for those who bundle multiple coverage lines under a single insurer. Notably, a rising number of clients opting to package their primary casualty lines with a lead umbrella experience substantial reductions in umbrella pricing compared to separate placements with other carriers. This packaging approach empowers insurers to apply more competitive umbrella pricing due to the synergy with primary casualty premiums.

Executive and Professional Risks:

Despite an array of challenges encompassing economic volatility, inflation, increasing interest rates, the proliferation of artificial intelligence, workforce reductions, class-action litigations, cyber breaches, and social inflation, the market for directors and officers (D&O) liability remains fiercely competitive. Yet, there has been some movement. In Q3 D&O premiums decreased at an average of -0.3% for the first time since 2017. Research suggests this may be a result of carriers pulling back on premium increases following the line’s peak in 2020 and 2021. Meanwhile, the employment practices liability (EPL) and crime markets retain stability.1

The fiduciary liability market, on a path of recovery, grapples with addressing excessive fee claims. The evolving cyber market, though significantly improved, continues to confront novel threats, warranting constant vigilance from policyholders.

Distinct Industries and Sectors:

For those industries featured individually in this report, it’s imperative to seek additional guidance from insurance experts. Unique market behaviors can emerge quickly within specific sectors. Notably, the healthcare and life sciences industries face distinctive cyber risks impacting hospitals and healthcare organizations worldwide.

MJ Solutions

Our solutions are tailored to address specific business challenges and insurance lines. The “MJ Solutions” sections accompanying each coverage and industry segment in this report offer guidance on navigating risks and capitalizing on opportunities within our evolving insurance markets.

We look forward to the opportunity to not only support your success but empower you to thrive in the upcoming year, no matter what the future has in store.