As we await the CIAB report, a few things have become clear. First, the property and casualty market continues to take separate paths. That is, property rates continue to decrease broadly over various industry rates, and casualty rates are increasing based entirely on market segmentation.  

We’re also seeing commercial property pricing continue to drop because of increased capacity, although CAT exposure still matters and remains under a magnifying glass. As for casualty pricing, it’s the industries with significant auto exposure who’re feeling the most pressure.  

And what does all that mean going forward?  

Property rates are likely to remain favorable, especially if—fingers crossed—we see another mild hurricane season. Large, complex risks will still depend on appropriate property valuations and risk engineering, but for those who continue to make improvements, the payoff in terms of program structure and pricing will be even greater.  

Even strong, well-managed casualty risks will experience flat to modest rate increases, and risks associated with heavy auto fleets and negative jurisdictional environments will continue to see the most scrutiny.  

Market dynamics are most likely to shift when it comes to workers compensation. As of now, low frequency and high profitability are keeping the market favorable, but certain factors hint at a shift:  

These factors are likely to drive up average costs per medical claim overall.  

For further market insights or tailored recommendations, get in touch today.