Lockton, a privately held independent insurance broker, says US commercial insurance buyers are currently operating in a market where strong capacity and competition are providing greater choice across a number of insurance lines.
In its latest quarterly Market Update, Lockton examines the conditions shaping the commercial insurance sector and highlights areas where buyers may have an opportunity to review their existing arrangements. The company says that, although favourable conditions can provide scope to secure more suitable terms, the wider market is becoming increasingly complex.
Lockton says this means organisations may need to consider their insurance programmes from a broader perspective rather than focusing solely on changes in premium rates. The company’s October report looks at developments across several major areas of commercial insurance and considers how buyers can use current market conditions when reviewing their risk strategies.
Vince Gaffigan, Lockton’s US Market Strategy & Engagement Group Leader, commented: “Buyers should be looking beyond just rate and consider whether their programmes are appropriately structured for the risks they face. That means reassessing retentions, limits, changes in operations, emerging exposures and risk finance strategies. Macroeconomic and geopolitical events can shift the market quickly, so now is the time to make any necessary changes.”
Lockton’s latest report also considers developments in the casualty insurance market. The company features a question-and-answer discussion with Bill Chepulis, Head of Large Casualty at Zurich North America, examining the outlook for the sector.
Data centres are another area covered by Lockton, with the report looking at how operators and their brokers can respond to current insurance market conditions. The company also considers the implications of artificial intelligence for cyber risk, including the challenges organisations face as emerging technologies alter the nature of cyber exposures.
Alongside its analysis of individual insurance lines, Lockton sets out seven strategies for buyers to consider when reviewing their programmes. The recommendations focus on using current market conditions to address existing requirements while preparing for emerging risks and possible changes in the wider insurance environment.
Greg Spore, Lockton’s Director of Market Intelligence in its US Market Strategy & Engagement Group, added: “Buyers have more room to manoeuvre today, but favourable conditions won’t last forever. The organisations that benefit most will use this moment to strengthen their programs, prepare for emerging risks and position themselves for what comes next.”
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