Now available: 2022 Mid-Year Business Insurance State of the Market Report

MMA works every day to stay in front of the emerging trends that can affect your insurance portfolio and bottom line. Inflation, underinsurance, and the ongoing conflict in Ukraine dominate the topics in this report. However, there are many other trends that can impact the insurance marketplace. Legislative challenges and state or U.S. Supreme Court rulings (e.g., the overturning of Roe v. Wade) demand every organization be ready to pivot at a moment’s notice to ensure stability.  

All of this is culminating in stronger headwinds for the insurance marketplace, especially in terms of increased loss costs that were already tenuous at best. It will be unfortunate if these circumstances erase any positive progress the market has made to reverse a nearly five-year-long stint of increasing rates. 

Exacerbated by war 

In his recent Leader’s Edge piece, “War on Five Fronts,” Russ Banham explained that while it’s too early to determine the long-term effects Russia’s invasion of Ukraine will have on global insurance markets, we can already see some troubling signs of what’s to come. “Cyber, aviation, political risk, trade credit, and marine are the lines worth watching,” he writes, “and some claims have begun to trickle in.”  

Banham notes that some have begun to extrapolate the potential impact to insurance markets from the conflict. “Several projections have been published on the aggregate losses from the war in Ukraine for the global insurance and reinsurance industries in the first quarter of 2022, ranging between $16 billion and as much as $36 billion, the worst-case scenario provided by S&P Global Ratings,” he said. “However, many experts cite a considerable amount of uncertainty regarding final numbers due to claims incurred but not yet reported”. 

Transforming challenges into opportunities 

With every challenge comes new opportunities. In this report, we’ll share insights with you on how to confront these challenges.  

The insurance marketplace is already building new products that are starting to come online to insure and guard against the cost of inflation. The first solution we’ve seen is aimed at the construction industry, but these inflation protections tend to be capped by a percentage. You’ll find more on inflation and underinsurance concerns in the property and casualty sections of this report.  

Your future is limitless. 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.  

Click here to view the Mid-Year 2022 U.S. Business Insurance State of the Market Report

If you have any questions about this report and marketplace update, please don’t hesitate to reach out to your local MMA representative.