These macro conditions are widespread and broadly impact commercial, employee benefits, and private client/personal lines insurance. Current market conditions are some of the toughest we’ve experienced for property and auto, and we do not foresee short-term or rapid improvement in these areas. Management liability, cyber, and workers’ compensation are currently stable with adequate capacity and stable rates, accounting for inflation, for those considered to be good risks. We expect current insurance conditions to continue into 2024.
Employers planning their annual employee benefits programs are also facing complex market conditions. Medical costs are increasing, double digits in some areas, and there continues to be much change within healthcare providers with consolidation and changing business models. Medical claims are up substantially as the healthcare system deals with a backlog of pent-up demand for medical services. Employers are also thinking more holistically about benefits for a diverse workforce and customization of programs to meet employee needs.
One thing is clear, we need to plan for increased risks and a challenging insurance landscape.