Renewal Outlook for Public Entity Property and Casualty Programs
The insurance market is in transition. As we approach the bulk of public entity property and casualty program renewals, we wanted to share our findings on the current renewals:
Property
- The past six years of a hard market, the longest in two generations, appears to be ending. We are seeing more competition for attractive accounts with good valuation, structures built within the last 25 years and clean loss history. It is not a soft market, but certainly an improvement for buyers.
- Accounts with catastrophe exposure to windstorm, convective storm, flood, earthquake and wildfire are not seeing as much competition and potential softening.
- In addition to rate pressures over the past few years, insureds have seen underwriters pushing for increases in values. Moving into the second quarter of 2024, material costs show evidence of stabilizing. Despite some small increases in a few categories, the national average for construction material costs have decreased slightly over the past 12 months, which has eased the push for increased valuations.
Liability
Liability marketing results vary substantially by client and geography. Clients with losses or in challenging jurisdictions continue to see increases on renewal. Preferred classes may see competition, while non-preferred accounts are struggling to complete placements on acceptable terms.
Workers’ Compensation
Workers’ compensation insurance costs depend on jurisdiction. Generally, we are seeing a stable market.
Cyber
This line of coverage has seen substantial increases and reduced coverage over the past few years. The market has softened and we are now seeing improved pricing and terms, with competition from a number of carriers.
Other Lines
Generally, other lines of coverage such as inland, marine, crime, fiduciary and incidental medical malpractice are seeing stable renewals if there are no losses.
The above comments represent general outcomes. Each account has specific factors impacting renewal outcomes. Also, clients participating in risk pooling organizations may not have seen as significant of increases if the market increases were absorbed by their pool. As a result, pool participants tend to see less of an increase in hardening markets and less of a decrease in softening markets.
Please contact your Alliant account representative for information specific to your placements.