With a possible recession on the horizon, carriers must game plan how to balance price point and loss costs. This will require becoming more agile and adapting to rapid change in the sector. (greenbutterfly/Adobe Stock)
With inflation skyrocketing, loss costs and premiums are going through the roof. Many policyholders worry about their ability to obtain coverage at a reasonable price, if at all.
A survey conducted by the Private Risk Management Association recently found that 78% of risk managers saw their high-net-worth clients' main concern as their ability to obtain reasonably priced premiums, with 60% concerned about getting any insurance at all. High-net-worth policyholders along with large and specialized commercial industries are more likely to require niche insurance for their more complex property portfolios, and it is these more specialized offerings that are squeezed out first. More generally, 54% of Americans say they cannot afford disaster debt because of premiums increasing.
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Tim Hardcastle
Tim Hardcastle is the CEO of INSTANDA, which provides insurance software solutions for carriers, MGAs and brokers. Prior to joining INSTANDA, Hardcastle served as a chief information officer for Hiscox PLC and Jarvis PLC.
