2020 Commercial Property & Casualty Market Outlook |
A firming marketplace Picking Up Steam
As we reflect on 2019 with an eye towards 2020, we see a market that continues to exhibit accelerated signs of firming. Carriers continue to seek rate increases while exhibiting more conservative underwriting practices related to limits offered, expectations around risk management documentation, and general terms and conditions.
According to the Council of Insurance Agents & Brokers (CIAB) Q3 Commercial Property & Casualty survey, pricing increased an average of 6.2% across all client sizes and geographies contemplated in their national survey. The segments experiencing the most significant stress include property, auto, umbrella, and public company D&O. In order to navigate the current environment optimally, insureds must start the renewal process well in advance, invest in a thorough underwriting narrative that highlights positive risk characteristics, utilize analytics during negotiation, and create significant competition among carriers.
We expect the market to continue along the hardening path over the next 12 months. To keep you informed, we are including a link to our Commercial P&C Market Update, A Firming Marketplace Picking Up Steam, available to download. This report will provide a summary of the aforementioned thoughts as well as a brief overview of how each coverage line is performing and what to generally expect at renewal.
Please keep in mind that these are general trends we’re observing, and each insured’s outcome will be highly predicated on their specific industry vertical and unique risk characteristics.
What is BKS-Partners doing in response to remain your advocate?
Here is a listing of crucial strategies we’ll be executing on your behalf to minimize volatility going forward:
- Diligently assessing and accessing all relevant insurer capacity well in advance of your renewal
- Crafting the right story to negotiate the best combination of price and terms
- Incorporating analytics in underwriter negotiations
- Making thoughtful counteroffers after receiving initial renewal options
- Communicating changes proactively
- Offering a plethora of resources to mitigate exposure to risk
Your BKS Risk Advisor is available to discuss how we can align the above strategies with your risk management program going forward to minimize volatility. Contact BKS-Partners to speak with a Commercial Risk Advisor about your business's insurance program.