Happy New Year. On behalf of the entire Alliant team, we wish you health, happiness, and every personal and professional success in 2023 and beyond.
2022 proved to be a challenging year for the property and casualty industry. All indications point to an even more challenging 2023. Cyber insurance rate increases seem to be moderating, perhaps indicating the beginning of rate adequacy. Property rates, however, appear to be headed for significant increases in 2023. Despite significant increases in the past few years, the industry continues to experience unprecedented CAT activity, most recently with Hurricane Ian and now flood losses out west. Carriers are renegotiating their reinsurance treaties at significant rate increases. Those increases will be transferred to the entire market. We expect pressure not only on price but in the amount of capacity available. Renewed pressure will also be imposed on insurance to value.
In many cases it appears that the consumer is not fully aware of the extent of potential increases. Hopefully your broker is keeping you well advised of this very dynamic situation to help avoid surprises. Like all challenges, together we will weather the storm.
Wishing you all the best,
Mark A. Goode and Dan Howell