Progress… Despite Property Challenges With the exception of property, market conditions across most lines have generally stabilized and become more predictable. Commercial insurers generally continue to report positive results, buoyed by strong investment yields and improving underwriting gains. With premium and interest rates not expected to fall anytime soon, insurers remain optimistic about improved profitability this year and next. Macroeconomic headwinds, however, continue to drive uncertainty and may lead to further disruption. Midway through 2023, all eyes are on the economy. Although inflation has fallen slightly, it remains above the Federal Reserve's goal, which could prompt additional interest rate hikes in the future. Borrowing costs remain high, credit standards are tightening and financial executives are planning for a recession. Meanwhile, a sense of buyer fatigue is setting in, leading some insureds to seek greater control over their risk financing choices. Considering alternative risk products, differentiating their risk and making use of analytics are all crucial strategies for buyers in the current marketplace.
Progress… Despite Property Challenges
With the exception of property, market conditions across most lines have generally stabilized and become more predictable. Commercial insurers generally continue to report positive results, buoyed by strong investment yields and improving underwriting gains. With premium and interest rates not expected to fall anytime soon, insurers remain optimistic about improved profitability this year and next.
Macroeconomic headwinds, however, continue to drive uncertainty and may lead to further disruption. Midway through 2023, all eyes are on the economy. Although inflation has fallen slightly, it remains above the Federal Reserve's goal, which could prompt additional interest rate hikes in the future. Borrowing costs remain high, credit standards are tightening and financial executives are planning for a recession.
Meanwhile, a sense of buyer fatigue is setting in, leading some insureds to seek greater control over their risk financing choices. Considering alternative risk products, differentiating their risk and making use of analytics are all crucial strategies for buyers in the current marketplace.