With the recent rise in inflation, market exits of insurance companies like United Property & Casualty, Southern Fidelity and St. Johns Insurance Company, numerous other insurer’s who are restricting capacity and moving away from designated coverage areas, and with an increase in claims, the property and casualty insurance market is experiencing widespread effects including less availability and rising premium for individuals and companies alike.
According to The Council of Insurance Agents & Brokers’ Commercial Property/Casualty Market Report from Q4 2022 (October 1—December 31), “premiums increase for the 21st consecutive quarter in Q4 2022, with respondents reporting an average premium increase across all account sizes of 8.0%, down slightly from 8.1% in Q3 2022.” 1
Due to these increases, now, more than ever, is the time to assess your policies. By working with seasoned commercial insurance professionals, like LG Risk Management, you can stay in front of this rising market costs and make more informed decisions when it comes to managing and mitigating your risk.
Louis Blangiardo, Director of Property and Casualty, at LG Risk Management, offered this advice to anyone experiencing issues like rising premiums, availability, or their insurance company failed or left a marketplace, “Initiating regular audits of your policies, not only in regards to price, but also to ensure complete coverage, and ensure you are receiving added value, will keep you in the know. Top rated insurers should be able to implement additional services that make sense for your business’ needs. And lastly, it will also ensure you are in compliance with latest industry standards.”
In 2022 and early 2023, the auto insurance category alone, saw a large number of insurance firms exiting certain states or closing their doors altogether. In Florida, according to the website myfloridacfo.com, there were 15 insurance companies in receivership.2 Even juggernaut firms like Allstate, GEICO, and Progressive announced losses and were passing those rate increases along to motorists. In August of 2022, GEICO closed their California storefronts, 38 in total, and went to an all online solution to service their CA residents.3
Commercial property coverages saw large rate increases as well. According to the same Commercial Property/Casualty Market Report sourced earlier, “premiums in this line increased sharply in Q4 2022 at an average rate of 16.0%.” The report noted that, “Inflation’s effects on property valuations and building replacement costs, as well as increased claims due to natural catastrophes were the primary drivers for commercial property’s difficulties.”1 This means that property owners can expect further difficulties with underwriting policies.
LG Risk Management can Help You Navigate these Unprecedented Times
Contact Louis Blangiardo or call 631-589-6960 today for further guidance on how to protect your organization. We have strong relationships with A Rated Insurance Carriers that have a long-standing history of providing excellent claims service and can find you coverage when coverage is hard to put in place. If you are experiencing a fall-out from your insurance carrier(s) and have to, or want to make a change, we have solutions for you and your business.
1 https://www.ciab.com/resources/news-release-q4-2022-p-c-market-survey-results-are-in/
2 https://www.myfloridacfo.com/division/receiver/companies
3 https://www.latimes.com/california/story/2022-08-02/geico-closes-all-california-locations-lays-off-more-than-100