Changing Insurance Market Continues to Impact Business

March 13, 2023 | Taking Care of Business Conference Showcases Top Speakers, Workshops, Cedar Rapids’ Resilience Jack Carra, Senior Vice President, AssuredPartners,

Hurricane Ian hit Florida on September 28, 2022. It was one of the costliest weather events in the world.

Severe weather events like Ian, along with ongoing supply chain challenges and inflationary pressures, are impacting coverage, premium, deductibles, and many other factors. After three years of a firming market, optimism for a more stable insurance market was shattered by Hurricane Ian. As market challenges continue, businesses are being impacted by new trends. Here’s a look at some of what is expected in 2023:


Due to catastrophic losses, reinsurance costs are going up considerably. Additionally, if insurance carriers are getting re-insurance due to a property’s location, protection, and/or value, it will cost insureds more.

Insurance claims from water damage have risen significantly. Frozen pipes, failed plumbing, sprinkler damage, and accidental impact are behind the losses.

An increase in violent events, such as war, riots, and mass shootings has created a demand for insurance protection that is beyond the scope of traditional property insurance. Claims paid by the expanded coverage these programs cover are beginning to affect pricing and capacity.

Increased material costs, supply chain disruptions, and labor shortages have led insurers to scrutinize property, machinery and equipment, and business income valuations. Insurers are requesting Business Income Worksheets to substantiate the values reported.

Loss control measures are increasingly important. Businesses with poor risk quality are experiencing capacity reductions and higher premium increases.


Increases in crime, social inflation, nuclear settlements, and inflationary factors have insurers remaining conservative with pricing, prolonging an environment of rate increases. Legislators are beginning to consider changes to state statutes or regulations to assist or curtail nuclear settlements.

As businesses assume more risk through higher deductibles and self-insured retentions, general and product liability rates are expected to become more competitive.

Rising medical costs, wage growth, an aging workforce, and the return to an in-person work environment are expected to put pressure on workers’ compensation. In addition, many insurance carriers are writing workers’ compensation and liability coverage as a package only.

Due to increases in auto claims, businesses that deploy technology and are focused on safety experience more favorable terms and pricing.


All organizations, regardless of industry or size, must take a holistic view of cyber risk management. Employee training, multifactor authentication, endpoint detection, 24/7 monitoring, network segmentation, incident response plans, and third-party risk management controls are among the control areas underwriters are focused on.

Despite the hard insurance market, there are ways to mitigate the challenges and optimize your insurance program. For starters, begin working with your insurance advisor well in advance of your insurance renewal. Preparing early allows you to identify markets and solutions, develop a quality underwriting submission using quality data, analyze the cost-benefit of program structural changes, and employ risk control to improve risk quality.