At Scott Insurance, our clients often ask us to predict how their property & casualty insurance costs will change year-over-year. While each company has their own unique characteristics that affect pricing, we can make some general market observations to help clients prepare for the future.
Looking back, 2017 brought near-record highs in U.S. catastrophe losses due to the hurricane trifecta of Harvey, Irma and Maria. While 2018 saw a reduction in these losses (down to $37 billion versus $53 billion*), hurricane Michael and historic wildfires in California made it the second highest loss year since 2011. Despite two near-record-setting catastrophe loss years, carriers are posting lower combined ratios due to a combination of diligent underwriting discipline, moderate price increases, favorable loss development and higher interest rates.
What does this mean for the property & casualty insurance buyer?
Buyers will most likely see premium increases across one or more coverage lines. That being said, while we anticipate some rate fluctuations for certain lines of coverage and classes of business, we predict a stable overall outlook the U.S. property and casualty insurance market.
In our Property & Casualty Market Outlook for 2019-2020, we look into some of the drivers of the current market conditions and examine some of the more popular coverage lines and pricing expectations.
Remember, Scott Insurance is here to help your organization find the appropriate insurance coverage. Contact one of our dedicated insurance professionals today to discuss your coverage options.
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Written by Michelle Sullivan
Michelle joined Scott in 2017 with more than a decade of industry experience and a background in Management and Professional Liability. In her role as Vice President of Marketing, Michelle serves Scott clients by ensuring they have the best coverage structure and most competitive premium terms available in the market. She monitors market changes and industry trends to effectively negotiate with insurance carriers on behalf of Scott clients.
A topic of continual discussion with our Affordable Housing clients is the Low-Income Housing Tax Credit (LIHTC). This critical tool is fundamental to success in the industry, but as it is currently administered, it creates significant exposures that must be addressed – both with proper insurance coverage and also with appropriate lobbying efforts to hopefully foster future change to alleviate some of the risk.
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“We were always focused on our profit and loss statement. But cash flow was not a regularly discussed topic. It was as if we were driving along, watching only the speedometer, when in fact we were running out of gas.” – Michael Dell, Founder & CEO of Dell Technologies
It takes a broad skill-set to run a successful construction business and navigate the significant risks inherent in the industry. Not only do you need to know the ins and outs of construction, you must also be skilled at business management and finance. From executing contracts to understanding the bid process to managing resources, not the least of which is cash. The quote above from Michael Dell about cash flow is very timely and applicable for contractors. A large surety company recently listed its “Top 10 Reasons Contractors are at Risk of Failing,” with Insufficient Cash Flow as #4 on the list. Cash flow issues have historically been at the top of similar lists of construction industry risks. The ability to quickly access cash is the universal resource to fix just about any issue that arises.
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Many drivers are convinced that it is okay to multitask while
driving, but crash statistics and studies on distracted driving indicate it is
not safe. The
National Safety Council estimates that cell phone use alone accounts for at
least 25% of crashes. It is
estimated that at a typical daylight moment, about 416,000 passenger vehicle
drivers are using handheld cell phones while driving.
April is Distracted Driving Awareness Month, and in
this blog post we debunk five lies concerning multitasking while driving
that many drivers believe as truth:
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In my service to clients as a Risk Advisor, I have a unique perspective due to my background as an attorney. By watching various legal actions, I see great opportunity to learn and help better protect the businesses and livelihoods of our clients. Specifically, as it relates to our clients in the affordable housing industry, housing discrimination cases can provide significant insights to guide the development or adjustment of risk management strategies and appropriately tailored insurance programs. Read Full Story
