Property rates have shown a decline in the recent past due to fewer natural calamities in 2014. The rates have been falling for several consecutive quarters, partly as a result of reduced losses. The trend is expected to continue. This article by Property & Casualty 360, assesses the P&C market outlook for 2015.
P&C insurers have been lowering premium rates of their plans on most accounts. The global insured catastrophe losses continue to hover below the 10-year average and reinsurance continues to grow cheaper. Thus us thanks to competition spurred by the influx of an estimated $20 billion in alternative capital that has poured into the reinsurance market.
Cyber coverage, cyber/privacy risk management, will be another important area of focus in the coming year, with high-profile cases of data theft or security breach on a rise. However, many middle-market contractors, distributors and manufacturers remain relatively unconcerned when it comes to a potential breach of customer data. Nevertheless, cyber risk remains a huge opportunity for the insurance industry.
The Property & Casualty (P&C) insurance market in 2015 will depend greatly on the impact of new capacity on rate pricing and nature or frequency and severity of natural calamities. Environmental coverage is another line where the frequency of claims have continued to rise 20%-30% each year since 2009, often not claims of low severity.
This article by Property Casualty 360 states that in 2015, the next big upgrade trend in insurance technology is forecast to begin. Independent agencies will continue to evolve with new technology, as well as employ new ways of operating and marketing themselves.
Read the full article.