On the heels of Hurricane Ian, this report has a stronger-than-usual focus on the property insurance marketplace. The Swiss Re Institute reported that Ian is expected to be the second-costliest hurricane ever for the U.S. property and casualty insurance industry.
The property market was already responding to inflationary factors, supply chain issues, the increased cost of labor and materials, and secondary property perils. Couple that with the aftermath of Hurricane Ian and we find ourselves in a further distressed property market. Hurricane Ian was the fifth strongest hurricane to make landfall in the U.S. and although the loss scenario could have been worse if there had been a direct hit on Tampa, there will still be significant insured losses on the commercial side.
The National Insurance Crime Bureau (NICB) recently shared a cautionary tale related to post-Ian recovery, noting that nearly half a million claims have already been filed related to the devastating hurricane. The NICB, dedicated to predicting, preventing, and prosecuting insurance crime, is warning claimants to beware of post-disaster scams as they begin the rebuilding process.
Cyber insurance continues to be particularly challenging, from both a pricing and a coverage perspective and it’s the the twentieth consecutive quarter of rising average pricing in the Marsh Global Insurance Market Index. And, while insureds are more aware than ever of cyber risk, insurance prices have risen, yet investment in security isn’t improving at the same rate (although progress has been made).
Transforming challenges into opportunities
We’ll wrap up this report with insights about how analytics can protect your bottom line and keep you in front of economic and inflationary challenges. With every challenge comes new opportunities.
Your future is limitless. Marsh McLennan Agency (MMA) remains steadfast in our commitment to support our clients through the challenges ahead. If you have any questions or would like to speak with an MMA representative, please reach out to your local MMA team today.
