Woodruff Sawyer's P&C Looking Ahead Guide: Experts Predict Single-Digit Rate Increases In 2024

SAN FRANCISCO, Dec. 5, 2023 /PRNewswire/ -- Woodruff Sawyer, one of the largest independent insurance brokerages in the US, announced today the release of the 2024 Property & Casualty Looking Ahead Guide. Inflation—both economic and social—continues to contribute to premium increases in the P&C insurance market, and rising reinsurance costs due to severe weather events have led to higher property costs. Woodruff Sawyer, however, does not expect significant rate increases in 2024—most buyers should see single-digit percentage increases, similar to what they saw in 2023.

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The 3 most crucial factors impacting P&C premiums are inflation, more frequent and severe catastrophic losses, and reinsurance costs. The combination of decelerating inflation and higher investment portfolio yields will improve insurer results, which should result in more favorable premiums but will not likely materialize until later in 2024.  In response to climate and catastrophic loss, expect insurers to place greater scrutiny on resilient building materials and construction practices. Finally, reinsurers have responded to catastrophic events by increasing premiums, adding more restrictive terms and conditions, and requiring insurers to retain more catastrophic loss.  

At the same time, the outlook for casualty in 2024 remains challenging. The hard market for primary liability is back due to litigation activity, backed by an increasingly aggressive plaintiffs' bar. By contrast, the workers' compensation (WC) trend noted in 2023's Guide, holds the greatest potential for rate reductions. Given the challenges on primary and umbrella liability renewals, it's critical that insurance buyers seek opportunities to leverage their WC programs to push insurers to provide optimal pricing for holistic casualty programs.  

Carolyn Polikoff, Commercial Lines President notes, "Each year, Woodruff Sawyer's P&C Looking Ahead Guide provides clients with expert-sourced guidance regarding expectations for the upcoming year, forecasting premiums and actionable steps to mitigate risk for buyers. In all types of insurance markets, it's crucial to have a knowledgeable and trusted insurance broker by your side to navigate your risk mitigation options. We're here to help guide you through the ever-changing insurance landscape and ensure your peace of mind."

For deeper insights, advice, and our predictions for the property and casualty landscape in 2024, download the 2024 P&C Looking Ahead Guide.

About Woodruff SawyerAs one of the largest independent insurance brokerage and consulting firms in the US, Woodruff Sawyer protects the people and assets of more than 4,000 companies. We provide expert counsel and fierce advocacy to protect clients against their most critical risks in property and casualty, management liability, cyber liability, employee benefits, and personal wealth management. An active partner of Assurex Global and International Benefits Network, we provide expertise and customized solutions where clients need it, with headquarters in San Francisco, offices throughout the US, and global reach on six continents. For more information, call 844.972.6326, or visit woodruffsawyer.com.

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SOURCE Woodruff Sawyer