2023 Commercial Risk State of the Market Mid-Year Report
If you’re a business owner, you’re likely aware of the challenges and trends impacting the commercial risk space. Over the past few years, some market segments and industries have been struggling with hardened conditions due to continued underwriting losses. As a result, carrier capacity has diminished, insurers have been retracting from riskier markets, premiums are higher, and underwriting scrutiny is heightened.
However, it’s not all bad news. On the bright side, other market segments have begun to soften, with rate increases still present but moderating. While it’s difficult to predict the future, through 2023 it’s likely that insurance carriers will remain disciplined in the underwriting process for all markets.
Challenges and Trends Impacting Businesses and the Insurance Industry
One of the biggest challenges facing the commercial risk space is the changing climate. Natural disasters like hurricanes, wildfires, and floods seem to be occurring more frequently and with greater intensity. This is leading to increased losses for carriers and less appetite for riskier markets. As a business, it’s important to understand your exposure to these risks and take steps to mitigate them. This can include things like having a robust business continuity plan in place, investing in physical improvements to your property, and purchasing additional insurance coverage if necessary.
Another significant challenge is the ongoing threat of cybercrime. As more businesses become reliant on technology, the risk of cyberattacks grows. These attacks can result in lost revenue, stolen data, and reputational damage. It’s crucial for businesses to take proactive measures to protect against cybercrime, such as implementing strong security protocols and training employees on cyber threats.
Finally, the regulatory environment is always a challenge for businesses operating in the commercial risk space. With new laws and regulations being passed all the time, it can be difficult to keep up. It’s important to work with a trusted insurance advisor who can help you navigate the regulatory landscape and stay compliant.
Strategies and Solutions to Mitigate Risk and Achieve Your Goals
Given the challenges and risks facing the commercial risk space, it’s important for businesses to take proactive measures to mitigate risk and achieve their goals. Some strategies that can be effective include:
- Conduct a comprehensive risk analysis to identify potential areas of exposure
- Invest in physical improvements to your property to mitigate the impact of natural disasters
- Purchase additional insurance coverage if necessary to protect against specific risks
- Work with a trusted insurance advisor who can help you navigate the complex regulatory landscape
- Implement robust cybersecurity measures to protect against cybercrime
- Train employees to recognize and respond to cyber threats
- Stay up to date on emerging risks and trends in the commercial risk space
By taking these proactive measures, businesses can better protect themselves against the risks they face and achieve their goals with more confidence and certainty. At the same time, it’s important to work with a trusted insurance advisor who can help you navigate the complex world of commercial risk and provide you with the information and insights you need to make informed decisions.
In the full 2023 Commercial Risk State of the Market report, we dig deeper into these trends and challenges, explore emerging risks, and provide you with actionable strategies and solutions that can help you mitigate risk and achieve your goals. You can access it below:
Have Questions? Connect with Burnham WGB Insurance Solutions
Let our Commercial Risk Advisors help you find beacons of opportunity during these challenging times. We’re happy to help answer any questions you may have about the current state of the market. Please feel free to contact us here.
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