Here at Gilead Insurance Agency in Michigan, we know that the world is changing at a rapid pace due to unforeseen circumstances. Many factors play a role in these changes, but here we’ll highlight the top three trends that have altered the realm of commercial insurance policies recently.
3 Commercial Insurance Trends
1. Continuing Labor Shortages
It’s no secret that with a record number of businesses closing and making drastic changes since 2020, many people haven’t returned to work. A recent survey by Provident Bank reported that at least 75% of businesses are still impacted by current worker shortages. As companies face a new set of challenges, their commercial insurance rates may change.
2. Supply Chain Struggles
Numerous supply chain disruptions are affecting the economy as a whole, and the realm of commercial insurance has had to change as well. Many closures have led to production slowdowns that ultimately result in the lack of availability of supplies. Indeed, businesses are resuming normal operations to increase production, but demand for many goods still outweighs inventory.
Further contributors to the supply chain issue include geopolitical conflicts, port congestion, rising energy and fuel expenses, and growing numbers of catastrophic weather events. The lack of warehouse workers, packers, and truck drivers also hinders delivery and shipment times for high-demand goods.
3. Impacts On Inflation
The labor shortage and supply chain issues are contributing to rising inflation concerns, which in turn affects the commercial insurance space. The spring consumer price index elevated claim costs in the market, which has resulted in greater expenses across the insurance industry.
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