Global composite insurance rates are trending down by 3% for a second quarter in a row. However, while double-digit rate increases are decelerating, loss trends can be heavily influenced by social inflation, nuclear verdicts, and the continued tsunami of cybersecurity-related incidents. Inflation, natural catastrophes, and pandemic fallout/ resurgence also remain worrisome.
Inflation continues to impact the cost of goods sold which contributes to rising costs for automobile repairs, building material prices, labor costs, and more.
In this increasingly complex risk landscape, mega storms are still a significant driver in loss trends. Compounding the problem, the increased frequency of localized natural hazard events are further influencing loss projections.
Pandemic/epidemic challenges remain a significant threat to resiliency on all of the above fronts. On July 22, Martin South, President of U.S. and Canada Marsh divisions, testified before the U.S. Senate on why there is still a need for a public/private pandemic solution. Many organizations continue to navigate the ongoing effects of COVID-19 and as a broker, it’s prudent to prepare our clients for the potential that another pandemic will emerge. The key to building a more proactive and agile response to the next pandemic will be an insurance and risk management public/private partnership with the government. There is a burgeoning policyholder coalition called the Business Continuity Coalition that has become increasingly vocal about the need for a forward-looking pandemic solution.
Marsh McLennan Companies supports the policyholder in their advocacy efforts, and continues to underscore their messaging with policymakers and key industry stakeholders around the need for a long-term solution to pandemic risk. Your future is limitless.SM Marsh McLennan Agency (MMA) remains steadfast in our commitment to support our clients through the challenges ahead. We’ll work with you on strategies to achieve the best outcomes.
Denise Perlman, CIC, Executive Vice President, Business Insurance & National Partnerships