The commercial property market has shifted for the first time in many years, and your approach to insurance needs to keep up. Conditions are competitive, offering opportunities and optionality to lock in stronger terms. It would take a major event to alter the current market, so it’s important to feel confident in the strategies you put in place today to protect your bottom line.
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What’s your commercial property strategy really built for?
Strategy matters
Property risks are often only reviewed at renewal or after a loss. This reactive approach can lead to unnecessary costs and affect your business stability. Using forward-thinking strategies supported by data-driven valuations and professional insights can help you:
- Keep coverage adequate and sustainable.
- Optimize deductibles, self-insurance, and layered programs.
- Build resilience against potential market fluctuations.
Different market conditions require different approaches.
Depending on the complexity of your risk exposures and property structure, some companies are experiencing a different environment than others.
If your company has significant assets in areas exposed to disasters and multiple carriers make up your property program, things should be looking good right now. Compared to recent renewals, you might see increased capacity and healthy competition among insurers, many of whom are still pursuing growth targets.
Carriers are open to flexible strategies, such as stretching capacity and exploring more creative deductible options. Even past losses may not prevent companies from achieving premium savings, as insurers continue to look for ways to deploy capacity on new business.
For companies with a smaller premium spend, often with just one insurer and a limited catastrophe-exposed footprint, it may be a little trickier. The market remains competitive, but it's not quite as flexible, as there is typically less fat to cut and program rates are often lower than those of multi-carrier placements. Continuing to follow loss control recommendations remains critical.
The good news is there's still room to improve your property program and benefit from a growing marketplace, especially if you’ve got the right partner in your corner to assist with risk resilience, loss mitigation, and global market access.
So, where does your business stand?
Do you know...
- How your current spending compares to others in your industry segment?
- What options have been considered to give you the best program optionality around rate, limits, coverage and deductibles?
- How your risk management strategies compare to those of your peers?
If you hesitated on any of these, our Property Strategy Checkup Quiz can help. In just a few questions, you’ll see where you stand in your property insurance journey and identify areas where you could gain more value.
At MMA, we’re not just here to help you save money. We aim to build insurance programs that are durable and stand the test of time. MMA brings global resources, local know-how, and a team of specialists who aren’t afraid to get into the weeds with you.
Let’s talk about your strategy.
Property Insurance Trends FAQs
Learn more about the key property insurance trends impacting the commercial property market and how MMA can help your company manage costs and plan for the future.
While the price of property insurance depends on a business owner’s industry, associated risks, location, and building age, other factors can impact the property market. These factors include drastic rate increases, growing underwriting losses, a difficult reinsurance renewal period, and reduced capacity.
Additionally, the frequency of natural disasters such as hurricanes, earthquakes, floods, wildfires, and tornadoes can significantly impact insurance claims and premiums for the carrier. This is due in part to climate change, which leads to more frequent and severe weather events. Rising sea levels, changing precipitation patterns, and extreme temperatures can also affect commercial property insurance costs.
Commercial property insurance can be helpful coverage for businesses of all sizes. Without it, company owners must pay for damages out of pocket. This requires large sums of money and could pause business operations.
The types of business owners who should purchase this type of coverage include those who:
- Own or rent an office or building
- Own or rent equipment or expensive tools
- Store inventory or products in-house
- Depend on business assets like computers and office equipment
- Have business records and other documents within their business
Our team of commercial property insurance specialists has several strategies to manage insurance coverage costs:
- Risk assessment: We’ll conduct a thorough risk assessment of a company’s business operations and properties to identify potential hazards, vulnerabilities, and exposures. By understanding what specific risks our clients face, we can tailor insurance solutions to mitigate them effectively, which can help lower insurance premiums.
- Loss control and prevention: Our team will implement loss control and prevention methods to reduce the frequency and severity of property losses. This could include safety protocols, training employees in risk management practices, or conducting property inspections.
- Claims management: We’ll provide claims management services to efficiently reduce claims costs and premium growth. Prompt and effective claims management can positively impact future insurance premiums despite the global insurance market index and inflation issues.
