July 7, 2022
What: In the US, 62% of all P&C policies are placed by independent agents, according to the Big I 2022 Market Share Report. Also, with 85% of the unclassified market, independent agents have demonstrated they are the preferred channel for handling unique insurance challenges.
Why it matters: Carriers are struggling to keep pace with the evolving expectations of independent agents (who place a majority of the business in the country). Carriers will need to upgrade their legacy systems to stay connected with these agencies.
Read: Market Share Report
What: Private carriers posted a combined ratio of 87% for 2021, achieving the fifth straight year with a combined ratio below 90% for the workers’ compensation segment and the eighth consecutive year of underwriting profitability. Telematics and other tech advancements have the potential to keep this trend going strong.
Why it matters: This is great news for the industry. But unfortunately, increasing inflation may put pressure on future combined ratios, forcing carriers to use creative approaches to maintain this recent success. Product innovation will be required in most markets over the next five years.
Read: Roundtable – July – Method Insurance | Amtrust Financial | Foresight Insurance
What: According to a recent survey by BlackBerry and Corvus, only 19% of companies in the US have cyber coverage above the median ransomware demand amount ($600,000). With the increasing cost of paying ransoms, this coverage gap is likely to continue growing.
Why it matters: Cyber risk is real and it is a big deal. But because our understanding of the risk is still in its infancy, cyber risk is likely to cause stress in the industry due to its high volatility.
Read: The Cyber Insurance Gap: What Is It, and How Can We Close It?
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