2023 P&C Outlook: Assessing the impact of higher rates & greater underwriter scrutiny

The availability of cyber liability insurance is expected to diminish. Sixty-four percent of survey respondents believe cyber coverage will be stable in 2023, down from 75% in 2022, with rates increasing as much as 50% in 2023. (Photo: zabanski – stock.adobe.com)

Businesses seeking renewals or new property and casualty insurance (P&C) coverage over the coming year will continue to encounter rate increases and greater underwriter scrutiny as insurers remain guarded due to ongoing economic uncertainty and the major impact of catastrophic weather events on property coverage. Inflation and court-related claims are also contributing to reduced market capacity, leading to increased emphasis on layered insurance coverage and clients assuming more risks going forward, Alera Group’s 2023 Property and Casualty Market Outlook reports.

Rate increases, access and capacity will vary significantly from industry to industry and region to region. Specifically, pricing will be influenced by the client’s industry, location relative to catastrophe-prone (CAT) areas, loss history and the effectiveness of its risk management strategy. Overall, pricing is expected to increase 9.3% in 2023, down from 11.1% the prior year.