New Report Explores Commercial Insurance Policyholders' Approach to Risk
August 11, 2022
The pandemic has presented everyone and every industry with new challenges. The insurance industry is no exception. The Council of Insurance Agents & Brokers (The Council) and global professional services firm EY recently surveyed policyholders, brokers and carriers to explore how these insurance-ecosystem members address risk-related pressure points in these uncertain times.
You can read their full report here: The State of Commercial Insurance – A Survey of Insurance Carriers, Brokers and Policyholders.
Key Findings of Commercial Insurance Report
Some of the key findings in the CIAB/EY report include the following:
- Operational innovation and digital transformation were key to carrier and broker success during the pandemic, with policyholders largely remaining with their current brokers. However, carriers and brokers need to continue investing in talent and technology to address their clients’ changing service needs and deliver tailored solutions. (Click here to learn about Hylant’s investment in technology and innovation.)
- Ninety-four percent (94%) of policyholders said their risk profiles had not changed during the past year. Yet, 72% of brokers reported that clients asked for new coverage types related to the pandemic, climate change, cyber risks, political and social unrest, and reputational impacts.
- Most policyholders reported that their most significant risk-profile concerns include cyber and economic risks. The growth of the remote workforce is contributing to the frequency and severity of cyber claims.
- Policyholders and brokers have experienced 16 consecutive quarters of premium increases (Q3 2021). Brokers have seen a retraction of limits or coverage in certain lines, including cyber (25%), property (21%), D&O (17%), excess liability (17%), and natural catastrophe (8%). As a result, carriers expect to see an increased use of self-insurance and alternative risk transfer (e.g., captive) solutions. (To learn more about the trends and conditions that affect your commercial insurance rates, read the latest Hylant Market Update report.)
- Policyholders reported that more holistic communication is occurring among senior management and boards of directors regarding an organization’s insurance and risk management decisions.
A Unique Study. A Unique Commercial Insurance Voice.
According to Ken A. Crerar, President/CEO of The Council, “This study was unique in that we’ve never had the opportunity to compare investment strategies, business priorities and industry perceptions from these three cohorts side-by-side.”
Hylant is an active member of The Council, a nationally recognized industry association and the voice of brokers and agents in Washington, D.C. Through our affiliation, we gain important insights into the federal legislative and regulatory environment, which helps us provide informed counsel to our clients. It also allows us to advocate for our clients at the highest levels of government.
The above information does not constitute advice. Always contact your insurance broker or trusted advisor for insurance-related questions.