The Russian invasion of Ukraine has had far-reaching implications on world markets and economies. Across all lines of coverage, the market has introduced various territory exclusions in an attempt to address aspects of the conflict between Russia and Ukraine. The wordings require specific attention and modification to ensure the intent matches the language. Insights and resources to help you navigate the Russia-Ukraine crisis can be found on our website.
Inflationary impacts
Inflation can increase the cost of claims for property, natural catastrophic hazards, and property placements now and in future years. The insurance industry is no different from any other business and will need to make adjustments to prices and coverage to account for both higher expenses and claims costs.
Risk of underinsurance
While inflation brings about many new risks to consider, it is important to be mindful of the risk of underinsurance. It is strongly recommended that organizations update the declared values of their assets and exposures where needed to account for increases caused by inflation.
Natural disasters
Mother nature's ability to wreak havoc should remain top of mind with an active Atlantic hurricane season predicted for 2022. AccuWeather’s forecast of 16-20 named storms is higher than the 30-year average of 14 per year, while the projection of six to eight hurricanes is in line with the normal of seven. In addition, flooding season is upon us. Read our latest thought leadership “Flood: Understanding the Risk, and Navigating Insurance Options”, which has insights for both homeowners and businesses.
Click here to view the Q1 2022 U.S. Business Insurance State of the Market Report.
