U.S. P&C Insurance Rates, Particularly Workers Compensation, Favor Shoppers


Premiums

As we move through the second quarter of 2017, increasing evidence indicates that the market for commercial property and casualty (P&C) insurance favors the buyers, thus providing the right setting for businesses to buy new policies.

The Lockton April Market Update points out that underwriting companies are refining their products and have a tendency to focus on industry specialization. They expect this to go on in the second quarter as far as favorable overall prices and insurance terms are concerned.

Workers compensation insurance rates continued to drop on top of the 2% decline that was already registered in the latest quarter. For clients that changed carrier upon renewal, the decline is even bigger, going up to 7%.

The insurance buyer gains advantages in the property market sector as well. Markets remain competitive and aggressive due to a lack of substantial industrywide losses. The effects are lower prices and better coverage opportunities. For example, earthquake coverage rates in California keep dropping because of an increase in capacity but also the lack of major catastrophic events in the past 20 years.

This is a good time for businesses to reassess their current policies and insurance providers, and potentially make a change that will shift the balance in their benefit. As your business grows and changes, it will face new risks that may be addressed by complementary or updated insurance coverage. Reviewing your risk profile to determine and address coverage gaps is, similarly, an important annual activity.

Businesses that don’t pay attention to market changes and fail to recognize these opportunities may consequently be stuck with insurance policies that don’t bring the best terms and prices. That’s why it’s highly recommended for businesses to regularly assess their rates and risk profile, and act whenever they notice a consistent drop in prices or opportunity to address coverage gaps.

Not having P&C coverage at all is an even bigger mistake because your business is at risk for financial losses that come from the damage of physical assets and other incidents. For example, the business could be required to fully cover costs which would be reduced through workers compensation in the unfortunate event of a work related injury.

Assessing the particular needs of your business allows you to take only the insurance policies that your company truly needs. At the same time, getting all the necessary coverage will minimize the risk your business is subjected to.

Review your company’s risks and get tailored insurance recommendations instantly with CoverWallet’s Advice tool.

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