• Working with an independent agent will be essential in navigating 2024’s challenging insurance landscape. This will become especially true in challenging markets like Florida and California, where traditional insurance carriers are leaving in droves. As insurance carriers continue to exit some markets and increase their risk restrictions in others, working with an independent agent will become critical for consumers navigating an increasingly complex insurance market. While captive agents are beholden to the carriers they work for, independent agents have the unique advantage of working solely for their clients, enabling them to advocate for their clients and set them up with a policy that truly meets their needs.
  • Consumers will embrace smart technology as a money-saving measure. As consumers continue to look for ways to save money on their home and auto insurance, smart technology will emerge as a go-to way to help cut costs. Drivers will embrace telematics to ensure they’re getting insurance rates that are on par with their driving habits, and homeowners will look to purchase smart home devices, like security systems and water leak detectors, to lower their risk profile and prevent claims from happening in the first place.
  • Some consumers will be more at-risk of losing their coverage. In order to recuperate losses from the past few years, carriers will be increasingly likely to terminate policies due to late payments, non-payments, and lapses in coverage in 2024. Further, carriers will continue to expand their risk restrictions (i.e., dropping your policy if your roof is over a certain age), increasing the likelihood of non-renewal. Work with an independent agent to understand and navigate your unique insurance needs and ensure you’re getting your payments in on time.
  • E&S and state-backed coverage will continue to dominate catastrophe-prone markets. As natural disasters increase in severity, frequency, and radius, insurance carriers will need to develop new data-driven models for assessing risk and determining premiums. Until they do, Excess & Surplus lines (E&S) coverage and state and federally-backed options (like California’s FAIR Plan or the National Flood Insurance Program) will continue to dominate the market. In 2024, E&S coverage will continue to be the unsung hero of the insurance industry, which could include new entrants to the E&S space, as well as MGAs offering both admitted and E&S products in underserved markets.
  • Some – but not all – auto insurance carriers will pivot back towards growth, a positive for consumers. Auto insurers who slowed or paused growth in 2023 due to an increase in the number of accidents and higher repair costs will pivot back towards controlled growth in 2024. Consumers will benefit from relaxed underwriting guidelines and more flexible billing plans. However, carriers that were late to slow growth in 2023 will continue to face significant loss pressure through 2024.
  • Increasingly severe natural disasters will continue to drive up insurance premiums and impact coverage offerings. If this year’s record-breaking number of billion-dollar natural disasters is any indication, severe weather events will continue to plague insurers and consumers alike in 2024. Insurance carriers, saddled with increased loss costs and a continuing hard reinsurance market, will continue to raise rates in response to these conditions. Further, we expect to see a continued retreat from catastrophe-prone markets as they look to grapple with increased losses from natural disasters. For the consumer, there will be fewer options in those markets, and they will likely be more expensive and could potentially offer less coverage.

While there’s no way to know for sure if these predictions will come to light, our experts agree that the agent role will be more necessary than ever in helping consumers navigate the unknowns of the market. To learn more about joining this growing, recession ressistant industry book an appointment with our team.

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