The commercial insurance outlook for 2015 shows decreasing rates and expanded coverage options. It may be the time of year when you are renewing your insurance program, or are budgeting for your 2015 renewal, so rather than simply rolling over your existing coverage, let’s look at what the market is doing, the outlook in 2015 and how you can use this information to best position your business for success.
Which Way Are Insurance Rates Going?
Over the past year we’ve seen improved financial results from insurance companies. Insurance companies are getting solid returns; as a result, for the most part, carriers are not pushing for increased rates. Many insurance companies also have increased capacity for new business. As a buyer this means that not only should you have more insurance options available to you, your insurance also should be more affordable than it has been in the past.
Worker’s Compensation: A Continuing Challenge
Even though insurance rates are decreasing and carriers are offering broader coverage terms, Worker’s Compensation continues to be a challenge due to the continued escalating medical and pharmaceutical costs. However, you’re not out of luck. The best way to control overall Worker’s Compensation costs is to partner with a broker who can help provide your company with loss control and claims mitigation.
Areas of Opportunity: Cyber Liability and Property and Liability Insurance
From Target to Home Depot to Kmart, data breaches have become a mainstay of the daily news cycle. As technology continues to evolve, so do cyber-criminals. This rise in cyber-crime has resulted in an increased demand for cyber liability insurance, which means more carriers are providing attractive options than ever before. From a risk management perspective, you certainly have an obligation to review your organization’s cyber exposures and risks. A knowledgeable broker can assist you with this analysis.
Another area of opportunity for businesses is property and liability insurance. Natural catastrophes such as Hurricane Sandy saddled our industry with billions in loss dollars. Today, however, we have been able to negotiate broader coverage options with better rates than those that have been available in recent years.
What You Should Do
Knowing that insurance rates are decreasing and that coverage options are expanding, now’s the time to take a look at your existing risk management program to determine what improvements can be made. You don’t have to do this alone. Working with a broker who has technical expertise in coverage analysis, who can negotiate for better coverage on your behalf, and who has the bandwidth to help you reduce claims or eliminate them is the best way to protect your company and mitigate risk in 2015.
Philadelphia, PA, 19102
