FEATURE and rising costs , including interest rates and supply chain issues , which further impact overall insurance costs .
There is a silver lining , however , as we move into 2025 .
“ Despite challenges , some insurance lines such as management liability , cyber and workers ’ compensation remain stable ,” said Scroope . “ These areas have adequate capacity and consistent rates , particularly for organizations with effective risk management strategies in place and good risk profiles .”
Many factors impact risk . Medical costs and claims are one of them .
The Risk Strategies report noted an upward trend in claims costs , driven by economic factors and social inflation — which are further driven by higher litigation costs and nuclear verdicts .
“ Employers also face rising medical expenses , which affect employee benefits programs and require more customized approaches ,” Scroope said .
HIGHLIGHTS BY INDUSTRY
The report took a deeper look at different industries ’ market conditions , coverage considerations and rate forecasts . From agriculture to transportation , fine art to health care , the report provides insurance professionals with a good look at current trends and some things to prepare for in 2025 .
In agriculture , profit margins continue to narrow for the second year in a row , diminishing returns in ag production . Looking ahead into 2025 , it ’ s clear that insurance agents must be qualified and equipped to properly value all insurance and farm bill options .
Aviation has seen dramatic changes over the last several years , though rates are stable today . This has allowed for more capacity broader coverage and increased limits – all good news for the space .
“ While rates continue to stabilize , the aviation underwriting market is becoming more competitive … with more competition , there is more capacity and lucrative opportunities for newcomers in the aerospace industry ,” per the report .
“ catastrophic events have also been linked to inflation and rising costs , including interest rates and supply chain issues , which further impact overall insurance costs ."
In terms of higher education , the report predicts the major business and insurance issues of 2024 will continue to impact institutions into 2025 .
Financial stability , demographic shifts , a leadership / talent crisis and technology impact higher ed insurance . Not to mention student health insurance — which have had rate increases of around 5 % over the past three years .
Student wellbeing remains a top priority as universities grapple with managing health plan costs . Many schools struggle to place adequate coverage within their liability programs for both abuse and traumatic brain injury .
Captives , consortiums and other alternative risk financing options continue to grow in popularity as universities seek more control over their risk financing .
In general health care , M & As continue to remain at a record high , with 31 announced hospital mergers
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NOVEMBER / DECEMBER 2024
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