2023 Insurance Trends + What This Means for You

It’s that time of year again when your friendly risk management and insurance providers – like us at the Concannon Agency – examine the latest trends within the commercial insurance sector, how those impact you as a business or property owner and ultimately, how we can help you navigate the latest changes to protect your assets and your bottom line.

Commercial Insurance Price Forecasts for 2023

Let’s dive into the price forecasts we are seeing in 2023. 

For the past four years, we have been in what we call a “hard” marketplace in the commercial insurance sector. This means that – due to various factors – the marketplace is less friendly to insurance buyers. We’re talking higher premiums and deductibles, limitations in coverage and stricter underwriting guidelines.

Image courtesy of Zywave P&C Outlook Summary

These conditions have caused limited capacity, stricter underwriting standards and rising premiums across many lines of commercial coverage.

When it comes to actual figures, we’re seeing anywhere from a 3% to 100% increase in pricing for various lines of coverage. And yes, we are seeing some decreases, too! Particularly with the workers’ compensation and D&O liability coverage.

Information  + image courtesy of Zywave P&C Outlook Summary

What Factors Play into These Increases?

A lot: increased severity and frequency of insurance claims; inconsistent underwriting profits; the aftermath of the pandemic; the economy; more sophisticated cyberthreats; inflation; the cost of reinsurance; and, more catastrophic natural disasters all play into the changing insurance market.

Business owners in particular have seen unique challenges over the last year. Specifically, workplace adjustments post-pandemic have resulted in difficulties in operations. Ongoing supply chain disruptions, shortages in labor and the Russia-Ukraine conflict are also factors in the mix. 

Other factors – such as the coverage you’re seeking, the size of your business, your industry, your business’ location, and even your risk management practices – can also impact your insurance rates.

Are Conditions Going to Improve?

In the second half of 2022, we started seeing some signs of stabilization in the marketplace – marked by decelerated pricing and expanded capacity within several coverage segments. 

These signs are promising, however, industry experts believe that certain factors affecting specific lines of coverage (e.g., commercial property, auto and cybersecurity) have and will continue to contribute to hardened conditions on the whole, making the return to a soft market less likely in the near term.

Still, 2023 may bring the most favorable conditions that we’ve seen over the past several years. 

Managing Rising Costs 

It’s more important than ever to have a skilled broker help you navigate these changes and how to protect your business and manage rising costs. Our team is adept at going into the marketplace and identifying the right insurance coverage at the best price, so we suggest contacting our team as soon as you’re able to so that we can begin addressing the several questions that underwriters will be asking about growing risks.

Mitigate Risk, Mitigate Costs

Do you have a risk management plan in place? If not, now is an excellent time to consider one. Business owners who manage and address risk losses head on are better prepared for a hardening market than those who don’t.

Underwriters are being more selective with the risks they’re taking on, too, so having a solid safety program and/or risk mitigation practices in place is vital to securing the best insurance coverage at the best prices.

Loss Control Services for Your Business

The Concannon Agency also offers Loss Control Services for our clients as part of our risk management solutions. A Loss Control plan can improve bottom-line dividends and can help improve your position in the insurance marketplace.

Through these services, we can also help develop a business continuity plan for your organization, which further helps minimize risks. What this does is help ensure your operations are functional in the case of catastrophic loss. 

In summary, while the 2023 forecast is perhaps not the most favorable, there are ways to ensure you are obtaining the best prices and coverage possible in this hard market. Send us a message and let’s talk about how we can help you with your specific insurance and risk management needs.