Here are the top four insights from the insurance industry in 2024

Here are the top four insights from the insurance industry in 2024:

1. Reduction in Premiums by 5-25%

Trend: In 2024, many insurers are seeing reduced premiums across sectors by 5-25%. This shift is partially attributed to intense competition in the market, improved underwriting, and advancements in risk management technologies.
Implication: Commercial policyholders can benefit from lower premium rates, though some specialized or high-risk sectors might not see these reductions as prominently.

2. Selecting the Right Insurance Broker

Trend: There’s an increased focus on selecting brokers who are well-versed in specialized risks, technological advancements, and market trends, as they can negotiate better terms and provide tailored advice.
Implication: For businesses, choosing a broker with industry-specific expertise is critical to obtaining the best coverage. These brokers can help navigate complexities, including niche risks and industry compliance requirements.

3. Cyber Insurance as a Priority

Trend: As online sales and digital operations continue to grow, cyber insurance has become a non-negotiable for businesses. The emphasis has expanded beyond coverage to also include preventive strategies and post-breach response support.
Implication: Companies now view cyber insurance not just as a policy but as a critical risk management tool. Providers are increasingly offering bundled packages with cyber training, preventive tools, and rapid response teams.

4. Risk Management to Prevent Claims

Trend: Proactive risk management is more popular as insurers and policyholders both seek to lower claim frequencies. By identifying and mitigating risks early, organizations can reduce exposure and maintain lower premiums.
Implication: Businesses are investing in risk assessment and preventive measures. Insurers are providing incentives or discounts for clients who adopt robust risk management protocols.

These insights reflect the evolving insurance landscape, where digital transformation, proactive risk management, and specialization are shaping the industry's future.

Jenny Holly Hansen is a cohost of the Thursday Nights Langley Impact Network. She is also a business insurance broker with Waypoint Insurance.

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