2022 Insurance Market Outlook
In February 2020, we wrote about the volatile insurance market that we had been facing for the preceding eighteen months, and how we expected it to continue well into the next year.
After another year of premium increases and intense underwriting in 2021, experts expect to see the market “soften” – at least a little – in 2022.
WHAT DOES A SOFTENING MARKET MEAN FOR CUSTOMERS?
As the insurance marketplace stabilizes, customers can expect to see lower premium increases and find it easier to secure new policies.
In many lines of business, including residential realty, experts are predicting single-digit premium increases, instead of the double- and triple-digit increases customers have been seeing for the past three to four years.
BUT PREMIUMS WILL STILL INCREASE?
In most sectors, premiums will continue to increase; however, it should be considerably less than in the past few years.
There are some areas, though, that will continue to see major rate increases in 2022:
- Cyber liability insurance rates are expected to increase dramatically as cyber attacks become more frequent and costly. Businesses will need to increase their cyber security, especially if employees continue to work from home.
- For more information on cyber liability insurance, click here.
- Directors & Officers liability insurance rates are also expected to increase in 2022, due to the ongoing pandemic, and changes to legislation (particularly regarding the environment and employment diversity).
- To learn more about Directors & Officers liability insurance, or get a quote, click here.
- Employment Practices liability insurance is another area where rates are expected to continue to increase, largely due to COVID-19. Return-to-work plans, vaccine mandates, and failure to provide safe work environments, can open up a company to employment practice lawsuits.
- More information on Employment Practice liability insurance – and why your business needs it – can be found here.
- Home insurance rates will continue to rise as natural disasters and catastrophic weather events – like 2021’s forest fires and floods – keep happening.
WHAT YOU CAN DO
To help lower rates, consider doing the following:
- Increase your cybersecurity, at home and at work. For tips on improving your business’s cybersecurity, click here.
- Follow government regulations and consult with lawyers when creating return-to-work plans or vaccine policies.
- Diversify your workforce, including your board of directors.
- Create a safe and healthy work environment for your employees.
- Work to reduce your business’s carbon footprint (clearly document your plan).
- Follow weather reports and prepare your home and business accordingly.
- Make repairs and upgrades to your property as needed.