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The Current Landscape of Commercial Property & Casualty Insurance in the Midwest: 2023 Insights and Trends

Market Overview: The Midwest’s commercial P&C insurance market is currently in a “Hard Market” phase. This means that premiums and rates are on the rise, potentially leading to challenges in finding cost-effective coverage for businesses, non-profits, and municipalities. Insureds may also see more restrictive coverage terms and conditions.

Trends in Premiums & Rates:

The Council of Insurance Agents and Brokers (CIAB) Q2 2023 P/C Market Survey:

· Premium increases remained stable in Q2 2023, with an average increase of 8.9% across all account sizes, up slightly from the previous quarter’s 8.8%. This marked the 23rd consecutive quarter of increases.

· Middle Market accounts saw the highest increase, at 9.8%, though only slightly higher than the 9.7% increase in premiums for large-sized accounts.

· Commercial property had the highest reported increase out of all lines, at 18.3%. Natural catastrophe losses and rising property values were among the primary drivers of these increases.

· Issues with reinsurance capacity led to difficulties placing property policies in the admitted market, especially for coastal property, as well as non-renewals from some carriers on existing accounts.

Swiss Re’s US Property & Casualty Outlook 2023 & 2024:

· 2023: U.S. commercial P&C insurance premiums projected to grow by 7.5%.

  • Growth is being driven by increased demand for insurance, as businesses seek to protect themselves from the financial impact of risks such as natural disasters, cyber-attacks, and liability claims.

· 2024: U.S. commercial P&C insurance premiums projected to grow by 5.5%.

  • Growth is expected to be slower than 2023, as some of the factors driving growth in 2023 are expected to moderate.
  • Demand for insurance is expected to slow as businesses become more accustomed to current economic conditions.
  • Inflation is expected to moderate, which will slow the growth of claims costs.
  • Competition among insurers is expected to grow and remain strong, which will put downward pressure on prices.

Driving Forces Behind the Rise in Premiums

Following are some of the factors that are driving the rise in commercial P&C premiums in the Midwest:

  • Increased Risk Exposure: Economic growth, climate shifts, and population growth are elevating the Midwest’s risk profile, leading to higher claims costs, and subsequently driving premiums and rates.
  • Reduced Competition: A consolidation of insurers in the Midwest has led to decreased market competition, resulting in higher premiums and rates.
  • Inflation Impact: Inflation is amplifying claims costs for insurers, driven by rising material, labor, and medical care expenses.
  • Cyber Threats: Growing cyber risks pose financial and reputational challenges to businesses, fueling the need for comprehensive coverage.
  • Climate Change: Extreme weather events caused by climate change are causing considerable damage to businesses, necessitating enhanced insurance coverage.

What Midwest Insureds Can Do

Considering the current hard market, middle market businesses, non-profits, and municipalities should take the following steps to protect their financial health:

  • · Work with Henriott: As an experienced insurance broker, we can help you assess your risk profile and identify the right insurance coverage for your business, with limits and deductibles that fit your risk tolerance and financial goals.
  • · Consider alternative risk financing solutions: There are a number of alternative risk financing solutions available, such as self-insurance, and various forms of captive insurance companies. These solutions can help you manage your risk and reduce your overall costs.
  • · Take steps to mitigate your risk: There are several things you can do to reduce your risk exposure, such as implementing loss prevention measures and having a business continuity plan in place. As an experienced risk management advisor, we can help you assess your risk profile and identify the right risk management initiatives to lower your Total Cost of Risk (premiums + retained claims + cost of risk management efforts + residual risk).
  • · Be prepared to pay higher premiums: Even despite the best risk management efforts, premiums are likely to continue to rise in the near future, so it’s important to factor this into your budget.
  • · Stay up to date on the latest insurance trends and developments via the Henriott Hub: This will help you make informed decisions about your insurance coverage and risk management strategies.


The Midwest commercial P&C insurance market is facing several challenges, including rising premiums, reduced competition, and inflation. Henriott is uniquely positioned to guide you through this intricate landscape. With a deep understanding of regional nuances and risks, we offer tailored coverage solutions that align with your needs and budget. Our suite of risk management services further empowers your business to mitigate potential exposures. In a landscape of change, Henriott stands firm as your steadfast partner, ensuring that your business remains resilient and protected.

For contact:

Zach Finn 765.429.5001 zfinn@henriott.com

About Henriott Group

Henriott is an independent Risk Management firm dedicated to helping clients prevent, manage, and recover from critical incidents. Working in both public and private entities through effective risk management, risk financing, commercial insurance, employee benefits, human resources, crisis management, contingency planning, and crisis response.

Grace Pritchett, Communications (765) 838-8610 | gpritchett@henriott.com



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