Today’s Market: Q1 2023 

Executive Summary

For the past four years, commercial insurance policyholders have experienced challenging market conditions in the context of uncertain economic conditions. Following the soft market of 2013-2018, commercial insurance premiums have grown globally by a compounded annual rate exceeding 8%, while the uncertainty of macroeconomic and political trends exacerbate concerns, notably:

  • Inflation and rising interest rates lead to challenging investment environments
  • The war in Ukraine destabilizes the European economic order and supply chains
  • Increasing competition between the US and China creates economic disruption and investment uncertainty
  • Climate change causes strains on business resiliency and the outlook for future investments
  • Continuing tight labor markets adds inflationary pressure on businesses

With that as a backdrop, the insurance industry is at an inflection point as it faces more its own challenges in 2023, specifically:

  • Underlying risks are changing quickly – from Artificial Intelligence to Cyber risk and from changing International Alliances to Global Disease:
  • Weather and climate risks are accelerating
  • Inflation/interest rate risk is increasing, notably driving claims costs, value reporting and wage inflation
  • Ransom / cyber attacks continue to grow and metastasize
  • Supporting capital flows – such as reinsurance and insurance linked securities – have dried up considerably
  • Rates are starting to soften as capacity re-enters the P&C Market and investment yields improve

In this report, you will find observations about the markets we serve, and forecasts and recommendations of what to expect in the near term. You will also find essential information on renewals and snapshots of markets, including Casualty, Cyber, Employee Benefits, Environmental, Professional Liability, and Property.

Insurance buyers face greater volatility overall, although the insurance markets have largely stabilized in 2023 (with the significant exception of the Property / Natural Catastrophe market). Please read through the full report for specific details.


Q1 2023 REPORT