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Rate increases predicted for most lines of coverage



The property insurance market will remain tight for the rest of the year and will be even more challenging for buyers in 2023 as reinsurers raise rates at renewals on Jan. 1 in the wake of losses from Hurricane Ian, brokerage firm Risk Strategies Co. said. in a report Wednesday.

Many casualty lines will also see rate hikes, the Boston-based broker said in its “State of the Market” report, which forecasts price trends for the fourth quarter of this year and the first quarter of 2023.

“Companies with unfavorable loss histories and those in cat zones will continue to see price increases. Weather and climate change significantly affect areas of the country, Florida and California in particular,”

; John Mina, CEO of Risk Strategies, said in the report.

Rates for policyholders with an unfavorable loss history or with properties in high-risk areas will see rate hikes of 50% or more, the report said. Average property risks will increase by 20% or more and high-quality risks will renew at flat or 5% increases.

Within casualty, car insurance rates are expected to rise by 5% to 10%, general liability levels will rise by 2% to 5%, umbrella rates will rise by 5% to 10% and workers’ compensation levels will be unchanged, the report said.

Cyber ​​liability insurance rates are expected to rise by 30% to 40%.

The management liability market, which has seen a surge in new entrants over the past year, is expected to become easier for buyers.

Liability rates for public company management are expected to be unchanged at 20% down for primary stocks and 10% to 30% lower for excess coverage. Private company management liability rates are expected to be unchanged at 5% up for primary cover and unchanged at 5% down for excess layers.


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