As we begin 2018, there are three areas to keep an eye on due to the uptick of claims and changing landscape: property, cyber and data security, and employment practices liability.
In 2017, the US experienced many natural disasters. Damages from Hurricanes Harvey, Irma, and Maria and California fires are expected to result in record property losses. We can anticipate an increase in premium for all property, including vehicles. Auto premiums are already through the roof because of an increase in claims and expenses due to distracted driving and expensive technology. With almost 1 million cars lost during the hurricanes, the rates are bound to increase further.
Takeaway: 2017 losses were at a record high, but there is ample surplus in the insurance marketplace to absorb these claims. This year, we expect insurance companies to increase rates. If you have a favorable claims history, work with your broker to maintain your current pricing.