THE INDUSTRY
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in the first half of 2024 . The sector is also facing high levels of staffing burnout and shortages , leading to facilities enhancing their benefits to aid and maintain their workforce .
“ The real estate space ( including office , industrial , retail , habitational , hospitality , etc .) continues to be affected by a wide range of variables that can impact availability of capacity , breadth of coverage , competitiveness of rate , and more ,” reads the report .
An increased demand for last-mile deliveries coupled with a labor shortage has the transportation industry facing both growth and challenge . According to the report , it remains a hard market .
Specific risk factors continue to fuel recent premium increases with physical damage hitting + 20 % to 25 % and umbrella liability + 10 % to 30 %, as well as auto liability 10 % to 20 %.
HIGHLIGHTS BY INSURANCE LINES
In addition to industry , Risk Strategies reviewed insights by insurance lines .
The captive insurance market , it found , continued to thrive in 2024 , thanks to ongoing economic pressures and flexible risk management solutions : “ Captives are seen as a versatile tool for risk retention and transfer , with applications expanding beyond traditional areas into property coverage , excess liability , and innovative revenue-generating programs ,” per the report .
Uncertain liability loss trends continue to increase premium and rates for most casualty lines , however competition for new business could tip the scale for some industries .
Cyber remains a rapidly evolving landscape . Carriers seem to be maintaining their strict underwriting scrutiny for cyber , as ransomware attacks resurged in the latter half of 2024 .
Organizations are generally seeing a decrease in cyber premiums , at the rate of 5 % to 10 %. However , those organizations with layered cyber security controls are experiencing premiums decreases of up to 20 %, sometimes more .
AI also remains on insurers ’ radar as a double-edged sword risk : On the one hand , AI tools can help cyber risk management be better at detecting mishap ; but on the other , cybercriminals are leveraging AI to inflict harm .
In the employee benefits world , constant change is the norm , and as 2024 ends and 2025 begins , Risk Strategies report predicts a few factors that ’ ll bring shifts : a bigger focus on equity and employee experience , pharmacy innovation will influence cost trends , increased transparency scrutiny highlighting employers ’ fiduciary responsibility , and more .
“ In our initial outlook for 2024 , we saw changing workforce and hiring dynamics increased impacts from turnover and the fast pace of pharmacy innovation trends . We anticipated increased medical utilization , inflationary pressure , and changes in admitting and billing patterns to play a significant role in raising costs for employers ,” shared John Greenbaum , National Employee Benefits Practice Leader , Risk Strategies .
Perhaps one of the biggest reliefs of 2024 : The property insurance market stabilized significantly this past year , driven primarily by two years of insurer and reinsurer profitability and improved conditions in the reinsurance market .
Catastrophic weather , particularly wildfire , remain major issues for the space , causing a larger reliance on excess and surplus lines market . Parametric solutions have acted as another alternative to traditional property insurance , providing “ rapid financial relief based on predefined triggers ,” according to the report .
For private client services , the primary drivers causing market challenges are severe weather activity , a complex regulatory environment , and fluctuations
24 KANSAS INSURANCE AGENT & BROKER