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August 25, 2022


What: The supply chain crisis has amplified risk exposures across the insurance industry, especially for commercial lines. The rise in inflation and supply chain disruptions are leading to higher costs for risks. One underwriting input of which policyholders should be aware is the insured’s reliance on “just in time” supply, as that higher risk exposure will lead to higher premiums.  

What To Do: With companies now holding inventory again, insurers and policyholders should check policies to see if extra property coverage is needed.

Read: How the Supply Chain Crisis Is Heightening Risk Exposures in Commercial Lines


What: According to McKinsey & Company, loss costs for P&C insurers rose by roughly $30 billion in 2021, due to inflation. Auto and Workers Compensation experienced the greatest impact. McKinsey is recommending loss reduction strategies and regular product updates in response to the increase in expenses. 

Why it matters: Due to Work Comp’s long tail for claims, a 16% percent increase matters a whole lot more than a one-time loss. Workers Comp has been experiencing a period of low loss-ratios, but insurers will need to identify new prevention technologies and mitigation strategies to maintain this trend.

Read: Countering inflation: How US P&C insurers can build resilience | McKinsey


What: Insurance has changed dramatically over the past few years as market conditions have compelled the transformation of many analog processes into digital processes, and new players have disrupted the traditional insurance model. Insurtechs and startups have impacted how insurance gets done, so the obvious question is: What’s next? Madhu Tadikonda, CEO of Corvus Insurance, believes commercial and other complex lines of business are next in line for disruption. 

Why it matters: There’s a lot of potential for disruption in commercial lines, but it’s a complex sector that requires a lot of sophistication. Carriers of all sizes are leveraging new sources of data to improve underwriting and offer usage-based coverages, and risk mitigation or other value-adds are helping carriers improve their offerings. 

Read: Insurtech 2.0: What is the future for the insurance industry?

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