Insurance Trends – 2022

Two major issues continue to shape the insurance landscape in 2022; extreme weather and nuclear court verdicts.

Regardless of your political affiliation, it is becoming impossible to ignore the fact that extreme weather events across the world are becoming more frequent and more devastating.  From hurricanes in the Gulf and Atlantic coasts, an extended and more extreme fire season on the west coast, and tornadoes in the mid west, the damages are putting a strain on the property markets across the country. This creates a ripple effect even for the areas seemingly unaffected.  And let’s remember, insurance is about sharing risk with the masses…

On the casualty side, “nuclear verdicts” are putting a strain on the liability markets, particularly Auto and Umbrella products.  The term “nuclear verdict” refers to court settlements that seem disproportionate to the damages and thought to “prove a point” to the defending party… typically insurance carriers.  This trend began around 2008 with the great recession when the masses began to lose trust in big corporate America.  But what the masses fail to realize is these verdicts, while intended to punish the insurance carriers, roll down hill to main street America in the form of increased rates.

Thankfully there are alternative insurance options and risk management techniques to avoid the repercussions of these trends. 

Please give us a call so we can discuss what works best for your business.