As we approach the midpoint of 2023, the environment isn’t much different from what we presented in our Budget Planning Guide published in October of last year. However, we are seeing increases across the board that are slightly higher than even we projected. It seems nothing is out of the realm from an economy still trying to contain inflationary pressures.
Supply chain issues in a Post-Covid environment remain a challenge that continues to drive replacement costs and resulting premiums in both commercial and personal markets. The frequency and devastation associated with various weather-related events will most likely not help soften the market throughout the remainder of the year, especially as we enter hurricane season. We will presumably continue to see increased rates, retentions, and more restrictive terms as we head into renewals the latter part of 2023.
The news is not all bad in that the Workers’ Compensation marketplace remains in a protracted soft market. An increased focus on workplace safety targeting overall employee well-being is leading to fewer Workers’ Compensation claims and thus keeping rates steady overall. Rising healthcare costs are forcing many employers to reevaluate their plan structure and employee contributions each year. Increasing average annual premiums of family coverage and prices for novelty and specialty drugs are just a couple of the driving factors.
No matter the environment, Sentinel is poised to deliver comprehensive Property, Casualty, and Employee Benefits offerings that are best suited for your risk appetite. Contact us today to learn how we’re dedicated to Safeguarding Your Success.
James L. Holmes, Jr.