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The Tide Could be Starting to Turn … in Your Favour

  • Emma Tyler
  • April 15, 2024

Ask any small business owner what keeps them awake at night, and you’re bound to get the same answer: rising costs. Wages, rentals, utilities, the list goes on. Insurance, long under the radar, has added to budget strains in the past few years.

The good news is relief could be on its way. After a long period of premiums rising sharply, they are beginning to level out, according to some industry reports.

It’s important to stress that premium rate movement varies widely across different lines of insurance, by geographical location, and according to clients’ risk presentation and mitigation.

But while some insureds are still facing increases, the overall trend shows prices are not rising as fast as they once were, and in some cases they’re flattening out or even falling.

According to one industry report, premiums flatlined in the December quarter as market conditions continued to ease in favour of customers seeking cyber, liability and casualty insurance, plus protection for other commercial risks.

The pace of rate increases has gradually slowed since peaking at 35% in the fourth quarter of 2020.

In the property line, prices were flat in the December quarter. Insurers have deployed more capacity, a sign of their eagerness to do business. Competition has also picked up, with new players entering the market, especially from the US.

In the financial and professional space, rates declined 5%, similar to the prior quarter.

Directors’ and officers’ rates continued to weaken, with clients getting reductions of 15% or more, while cyber was flat.

In the casualty class, rate increases slowed to 4% from 5%. Insurers have added capacity and are giving clients more options with their risk programs.

So if you have been looking at your business insurance and trying to find ways to ease the strain on your budget, now’s the time to do something about it.

We can’t promise a lower premium, but we can do everything possible to present your risk in the best light as the hard market starts to ease.

Talk to us to ensure you have the right insurance coverage. We are committed to finding you the most cost-effective insurance solutions suited to your needs.

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