Brown & Brown, 5th largest insurance broker in the world, recently issued their Quarter 1, 2023, Market Trends, Commercial Insurance and Risk Management. The Market Trends discussed several lines of coverage, including property, casualty, cyber risk, executive liability, multinational, surety, and aviation.

We believe that their forecasts on property insurance coverage could have a considerable impact on manufacturers in the Nature Coast region. Here’s their insights:

PROPERTY INSURANCE COVERAGE – “Initially, markets projected stabilized rates and a slight easing for well-protected, loss-free property risks. However, losses from Hurricane Ian and Nicole have negatively impacted this outlook. Though insured losses have yet to be fully calculated, it is expected to be one of the costliest years in history. This will significantly affect the approach to capacity deployment and pricing throughout 2023.”

“Programs with unfavorable loss history and locations exposed to catastrophic events (CAT) should
anticipate significant (25%+) rate increases due to current marketplace conditions and increased
reinsurance pricing. Programs with favorable loss history and locations exposed to CAT should expect 15%+ rate increases for the same reasons. Those with favorable loss history, strong risk control measures and no CAT-exposed locations could see single-digit rate increase renewals, again driven by reinsurance availability and pricing.”

“Historically, insurers were able to economically cede CAT risks to the facultative property market, which allowed many to provide abundant capacity on programs with large concentrations of values and CAT exposures. In the second half of 2022, the facultative reinsurance marketplace retreated from CAT risks, reducing capacity and increasing pricing. This change may continue to cause increased reinsurance cost rates and reduced facultative CAT capacity during 2023.”

Check out the entire, insightful report at the Brown & Brown website.