In this week's news will talk about what's happening with US commercial insurance rates, construction insurance capacity rises as market stabilizes, and much more…
Inszone acquires Beswick Insurance to enhance community-focused offerings
Inszone Insurance Services has announced the acquisition of Beswick Insurance, the latest in a series of deals which seek to enhance the firm’s presence and strengthen its focus on delivering community-oriented service.
Beswick Insurance was founded in 1947 by Bob Beswick. Teri Anello, who joined the agency in 1978, became the owner in 1994 after purchasing the business from Beswick upon his retirement.
Under Anello's leadership, the agency continued to grow, maintaining a strong connection to its clients and offering personalized service.
Anello said she was drawn to Inszone for its professionalism and the wide range of insurance markets it offers.
Beswick Insurance was founded in 1947 by Bob Beswick. Teri Anello, who joined the agency in 1978, became the owner in 1994 after purchasing the business from Beswick upon his retirement.
Under Anello's leadership, the agency continued to grow, maintaining a strong connection to its clients and offering personalized service.
Anello said she was drawn to Inszone for its professionalism and the wide range of insurance markets it offers.
The P&C business line that's outperforming all others in the US
The workers’ compensation insurance sector remains the top performer in the US property & casualty industry, thanks to steady reductions in loss frequency and favorable reserve development trends, according to a new report by AM Best.
Titled “Workers’ Compensation Segment’s Winning Streak Continues,” the report highlights that, since 2015, the workers’ compensation segment has consistently been more profitable than any other commercial or personal insurance line. This ongoing success supports AM Best’s current stable outlook for the segment.
In 2023, the workers’ compensation line achieved a combined ratio of 88.7, outperforming the 10-year median of 91.5. This figure demonstrates the line’s resilience and efficiency compared to other P&C business lines.
Titled “Workers’ Compensation Segment’s Winning Streak Continues,” the report highlights that, since 2015, the workers’ compensation segment has consistently been more profitable than any other commercial or personal insurance line. This ongoing success supports AM Best’s current stable outlook for the segment.
In 2023, the workers’ compensation line achieved a combined ratio of 88.7, outperforming the 10-year median of 91.5. This figure demonstrates the line’s resilience and efficiency compared to other P&C business lines.
What's happening with US commercial insurance rates?
The latest data from WTW indicates that US commercial insurance rates experienced a 5.9% rise in the second quarter of 2024.
The findings come from the brokerage’s Commercial Lines Insurance Pricing Survey (CLIPS) for Q2, showing a modest deceleration from the 6.3% rate reported by insurance carriers in Q1 of 2024 and 6.1% during the same period last year.
The quarterly CLIPS survey by WTW offers a retrospective view of historical price movements in the commercial property and casualty insurance space, as well as claims cost inflation.
The slowdown in overall commercial insurance price increases was primarily due to a notable reduction in the growth of commercial property rates. The sector, which had seen strong price hikes earlier in the year, appears to be stabilizing, indicating it may have hit its peak in Q1 2024.
The findings come from the brokerage’s Commercial Lines Insurance Pricing Survey (CLIPS) for Q2, showing a modest deceleration from the 6.3% rate reported by insurance carriers in Q1 of 2024 and 6.1% during the same period last year.
The quarterly CLIPS survey by WTW offers a retrospective view of historical price movements in the commercial property and casualty insurance space, as well as claims cost inflation.
The slowdown in overall commercial insurance price increases was primarily due to a notable reduction in the growth of commercial property rates. The sector, which had seen strong price hikes earlier in the year, appears to be stabilizing, indicating it may have hit its peak in Q1 2024.
US insurance employment surpasses 3 million
The US insurance industry added 3,300 jobs in August, showing slight improvement compared to the gains in July, according to preliminary data from the Bureau of Labor Statistics (BLS).
Since August 2023, the industry has added 40,600 jobs, bringing total employment in the sector to approximately 3.02 million, according to BLS data cited in an AM Best report.
In August, total nonfarm payrolls increased by 142,000, while the unemployment rate remained steady at 4.2%. Job growth was primarily driven by the construction and health care sectors, the BLS reported.
Since August 2023, the industry has added 40,600 jobs, bringing total employment in the sector to approximately 3.02 million, according to BLS data cited in an AM Best report.
In August, total nonfarm payrolls increased by 142,000, while the unemployment rate remained steady at 4.2%. Job growth was primarily driven by the construction and health care sectors, the BLS reported.
Construction insurance capacity rises as market stabilizes
The global construction insurance market is seeing a notable increase in capacity levels, approaching those seen in 2019 during the last soft market cycle, according to a report from WTW.
This upward trend in capacity is forecasted to continue through the second half of 2024 and into 2025, driven by insurers’ focus on maximizing local capacity and pressure from new market entrants seeking to gain a foothold.
The findings are part of WTW’s “Global Construction Rate Trend Report,” which examined market conditions affecting construction insurance worldwide.
Key drivers of the market include growth in infrastructure projects, pricing stability, and opportunities emerging from coverage gaps.
This upward trend in capacity is forecasted to continue through the second half of 2024 and into 2025, driven by insurers’ focus on maximizing local capacity and pressure from new market entrants seeking to gain a foothold.
The findings are part of WTW’s “Global Construction Rate Trend Report,” which examined market conditions affecting construction insurance worldwide.
Key drivers of the market include growth in infrastructure projects, pricing stability, and opportunities emerging from coverage gaps.