White Paper

Here’s What Public Entities Can Expect as the 2022 Renewal Season Draws Near

Inflation, labor shortages and supply chain issues are among the high-level market drivers impacting the 2022 renewal cycle.

White Paper Summary

Not since the 1990s have public entities faced such a hard insurance market. The talent gap created by the Great Resignation, increasingly complex supply chain issues and soaring inflation are among the macro factors influencing the property & casualty insurance market and 2022 renewal cycles.

Despite improvements in the combined ratio between 2018 and 2020, the expectation for 2021’s final tally is one of deterioration, due in large part to COVID-19, catastrophes and both economic and social inflation.

Local government and municipalities can expect P&C renewals to correspond with geography, exposures and experience.

For property, specifically, insurance-to-value concerns abound across the industry, and rates are increasing but at a slower pace. Casualty rates, like property, are increasing at a slower pace this year, and the dynamics associated with nuclear verdicts in sexual abuse lawsuits, along with cases involving law enforcement, are continuing to put pressure on the entire market.

The renewal rate environment for cyber coverage will be challenging, but slowdowns may come toward the end of 2022.

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