The resounding message in Sentinel’s just-released 2018 insurance forecast is this: don’t believe the popular punditry and predictions on rising rates. While it’s true that last year’s storms and environmental catastrophes will lead to a natural tightening of the market in 2018, that won’t necessarily translate to higher rates, with a few exceptions.
What we will see in 2018 is a shift in strategy that is long overdue. Sentinel contends that the year ahead will be less about the transaction of insurance, and more about the tenets of good risk management, than ever before. Insurance carriers, who’ve experienced several soft, sluggish years, will lean toward rate increases to get what they really want, which is more premium.
The bottom line is this: today’s insureds have far more control over their rates and policy structures than in years past. And while businesses could once rely on the work of their insurance broker secure favorable terms and rates, today’s insureds require a more strategic partnership to navigate an increasingly complex array of risks and exposures.
Read Sentinel’s 2018 Insurance Market Review and Forecast here: http://sentinelriskad.wpengine.com/publications/2018-market-review-forecast