As insurance agents, we know how important it is to stay on top of trends and changes in the industry. With the unprecedented events of the past year, it's more crucial than ever to understand what's happening in small commercial E&S insurance.
With that in mind, let's take a deeper dive into what we can expect to see for the remainder of 2023.
1. Focus on Cyber Liability Insurance
As more and more small businesses rely on technology for their daily operations, cyber threats are becoming a real concern. In response, we can expect to see more insurers offering cyber liability insurance as an add-on or stand-alone product.
In addition, we anticipate that cyber liability policies will become increasingly customizable. This will allow agents to match insurance policies to their clients' specific business needs.
2. Continued Expansion of Excess and Surplus Lines
The E&S market has been growing consistently for several years now. We expect that trend to continue. In particular, we'll likely see more insurers entering the E&S market, offering new products and expanding their geographic reach.
One area of expansion that bears watching is the flood insurance market. With multiple major hurricanes in recent years causing billions of dollars in damage, we know that the risk of flooding is only increasing. This has created a need for more and better insurance products to protect small businesses.
3. Traditional Rating Methods Will Give Way to New Technologies
Although the industry has been slow to embrace new technologies, we're seeing more insurers experimenting with data analytics and machine learning. These new tools can provide more accurate pricing and risk assessments, which will help promote more competitive pricing and better underwriting.
In addition, we anticipate that new technologies will allow insurers to streamline their processes, making it easier and more efficient to underwrite and issue policies. We're continuously working to incorporate new technologies at Pathpoint to make small commercial E&S even faster than it is today using our platform.
4. Greater Emphasis on Customer Experience
Finally, we can expect to see insurance companies placing a greater emphasis on customer experience. Improved digital platforms and mobile apps will make it easier for policyholders to access their accounts, receive quotes, and file claims.
Insurers will also likely emphasize transparency and ease of doing business. Agents and clients will be able to access and interact with policy details in real-time, reducing the need for lengthy back-and-forth communications.
At the end of the day, small commercial E&S insurance is a dynamic and ever-changing industry. To succeed in this market, agents must keep current with trends and technologies.
In 2023, we can anticipate greater focus on cyber liability insurance, the continued expansion of excess and surplus lines, adoption of new technologies, and an emphasis on customer experience.
By staying on top of these trends and adapting as necessary, we can continue to provide our clients with the best and most comprehensive coverage available.