Commercial property and casualty (P&C) insurance is at a critical point as the industry faces mounting economic pressures, including inflation, capital constraints, geopolitical challenges, and climate change-driven catastrophes.
According to McKinsey’s 2023 global insurance report, commercial carriers risk losing their relevance if they don’t fulfill the demand for resilience and plug protection gaps.
But Shannon Varney (pictured), one of the report’s authors and a partner at McKinsey, said that while carriers are being challenged, it’s also a time for brokers and MGAs to step in.
“This moment is a big inflection point for the commercial insurance industry,” Varney told Insurance Business.
“We see this as a critical time to provide real solutions for their insureds as the nature of risk is changing and new sources of risk are emerging that weren’t as acute or as severe as previously.
