4 Insurance Trends and Takeaways from 2024 So Far
As we move through 2024, mid-market alternative asset managers must stay informed about key trends in the insurance landscape to make well-informed decisions. This year brings several important developments in the management/professional liability and cyber markets. From stabilizing rates to the persistence of a buyer-friendly soft market and the continued availability of broad coverage, understanding these trends will help firms navigate their insurance needs effectively. Also, fostering strong partnerships with brokers and carriers remains crucial for achieving optimal results across the insurance program.
#1 Rates are Stabilizing
In 2024, insurance carriers are forecasting a stabilization of rates across the management/professional liability and cyber markets. These markets are experiencing 'soft market' conditions, which are expected to stabilize throughout the year. Carriers continue to aggressively quote new and renewal businesses to meet ambitious growth targets and counter increasing market competition, creating a more stable pricing environment for mid-market alternative asset managers. However, it's important to note that these conditions are not expected to last. This presents a prime opportunity to review your insurance policies and leverage the favorable conditions.
#2 The Soft Market is Still Here
Buyer-friendly conditions persist in the management/professional liability and cyber markets, continuing the "soft market" trend. These conditions empower purchasers, allowing brokers to advocate for increased coverage and aggressive renewal pricing on their client's behalf. During renewal, brokers should push carriers to offer favorable policy language that addresses critical terms and coverages. These include securing the most favorable hourly rates for defense counsel, coverage for informal investigations by regulatory or enforcement agencies, increased social engineering coverage, appropriate carve-backs to applicable exclusions, and favorable notice and reporting provisions.
#3 Broad Coverage is Still Available
Despite the rising costs associated with defending claims, carriers are not currently indicating any reduction in coverage as a strategy. This decision is primarily driven by increased competition from existing carriers and new market entrants. As a result, broad coverage remains available for industry professionals, ensuring that mid-market financial firms can still secure comprehensive insurance protection to address their unique set of risks
#4 Finding the Right Partner
Placing a strong focus on cultivating partnerships with brokers and carriers that consistently deliver positive results across your firm’s entire insurance program is paramount. These relationships are about securing the best rates and coverage and aligning your firm's insurance strategy with its unique needs. By working closely with reliable partners, you can ensure your firm benefits from tailored coverage, competitive rates, and exceptional service. This, in turn, enhances your insurance strategy's overall effectiveness and stability.
Concertiv's Insurance Advisory:
At Concertiv, we believe that smart insurance purchasers should go beyond just considering premium retention. It's crucial to focus on factors such as favorable policy language, appropriate counterparty risk, program structure, and strong broker partnerships. This comprehensive approach ensures that your insurance contract is robust and provides the coverage you need when it matters most.
The true effectiveness of your insurance product is only revealed when a claim is made. Therefore, it's essential to ensure your policy is written as broadly as possible to guarantee maximum protection.
Contact us today to get an independent assessment of your firm's insurance including coverages, coverage limits, carriers, premiums, language, and retention details.
