The market bodes well for property, casualty and other lines of commercial insurance in 2017, with buyers benefitting from comprehensive strategic risk management and risk transfer strategies, according to Willis Towers Watson’s 2017
Marketplace Realities report.
“The mix of increases and decreases, while subject to some change line by line, overall remains steady,” Matt Keeping, head of broking, North America, explained. “The marketplace continues to offer opportunities for buyers, but as always, strategic planning yields the best results. The key point for buyers is to understand the nuances of the market so they can optimize their risk management programs.”
The report forecasts negative growth for property insurance next year, while cyber and benefits will continue into positive territory. Benefits will likewise grow, but professional liability will be a mix of modest increases and decreases.
“While insurance companies have been struggling to achieve the level of growth that shareholders and industry analysts hope to see, the overall stability of the industry — its ability to absorb losses, pay claims following catastrophes and support sustainable business growth — is a positive sign,” Keeping added.
But other factors could drive growth, such as innovation, Keeping further said. “In our view, exploring the critical intersections between corporate risk, talent and assets offers a unique path to growth. Historically, the industry has viewed these areas of risk in silos, but with a keen vision and the application of sophisticated data and modelling, we can begin to deliver new perspectives on risk that will propel the industry in new directions,” he concluded.
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