The insurance market has been in an increasing-rate cycle since 2018. There has been considerable variation across lines of coverage, with Property, Cyber, Auto, and Excess Liability experiencing the most strain. Increases on other casualty lines have been more modest, while the Workers’ Compensation market has been competitive for healthy accounts.
For much of 2022, we experienced a deceleration in rate increases (though generally not rate decreases), a sign that the market may be softening. This was upended by Hurricane Ian, which struck Florida in late September and caused insured losses that are expected to total $50-65 billion. Total insured catastrophe losses for 2022 are estimated at approximately $120 billion, the second straight year over $100 billion and well above the long-term average.