Brown & Brown’s Market Trends allows you to connect quickly to key topics and notable updates in the insurance marketplace. Dive deeper on any topic with our Brown & Brown team to better understand how these trends may impact your business. We welcome the conversation.

Property

Growth goals for this year have created more competition in property underwriting. There is evidence of modest softening, as reporting determined that Q2 of 2024 was the first quarter since 2022, with an average property rate increase below 10% (CIAB).

Reinsurers have returned to strong profitability through repricing, elevating attachment points and shifting away from high-frequency loss layers, forcing primary insurers to retain more risk. After significantly reducing capacity in 2023, reinsurers are modestly increasing their appetite.

However, the market does not anticipate significant softening in natural catastrophe insurance and reinsurance rates. Increasing and unpredictable weather losses are difficult to model and price, coupled with low-risk, highyield investment alternatives, serve as barriers to entry for capital deployment to attract capital deployment into new reinsurance capacity. Underwriters are expected to focus on accurate property valuations to address replacement cost inflation and risk quality by completing engineering recommendations and business continuity planning.

Severe convective storms (SCS) are an increasingly significant loss driver, with percentage wind/hail deductibles becoming a standard practice. Loss-free, well-protected accounts can expect flat to modest rate increases. Poorly performing, protected or exposed risks may continue to experience double-digit rate increases.

Casualty

General/Umbrella Liability

The market is stabilizing for accounts with no loss activity. Capacity is available but limited. Few carriers are willing to underwrite $25M layers. Understanding underlying fleet exposures is essential, as this topic is driving underwriter discussions. Flat to 10% rate increases can be anticipated for most of the marketplace. Carriers remain focused on risk management, higher retentions and loss prevention strategies to help mitigate rising costs.

Auto

For automobile liability and physical damage coverage, carriers face higher claims costs driven by increased accident severity, medical cost inflation and rising repair costs. Costs to repair vehicles outpace the ability of insurers to profit in this line of business. Depending on loss activity, rate increases range from 5-15%. Nuclear verdict concerns and labor shortages still impact the insurance industry’s effort to maintain profitability and stability, leading to stricter underwriting standards and higher premiums in an ongoing hardening market.

Workers’ Compensation

Recent trends in a historically soft market have shown a shift. Though workplace safety and automation have improved, claims severity is rising, driven by medical inflation and higher indemnity costs. Loss-sensitive accounts are experiencing a competitive market with reductions when the program is marketed. Some insurers accept a portion of the collateral in the form of a surety bond instead of a letter of credit or cash. In guaranteed loss programs, carrier competition and capacity continue to flourish.

Property & Casualty Team