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2024 Ames & Gough Market Survey: A/E Firms See Steady Growth, Evolving Risks and Inflation Driven Costs

by | Mar 7, 2024 | architects and engineers, Important, News, Resources

            A/E Firms See Steady Growth, Evolving Risks, and                                                   Inflation-Driven Costs

With the U.S. construction sector benefiting from moderate economic growth, insurers offering professional liability coverage for design firms witnessed consistent premium expansion for the third consecutive year. Looking ahead to 2024, insurers are confronted with the challenges of navigating the effects of economic and social inflation on claim expenses, alongside heightened risks associated with specific project types, professional design disciplines, and evolving alternative project delivery methods.

As we embark on the new year, Ames & Gough (A&G) remains dedicated to addressing these issues, along with ongoing developments in the professional liability insurance landscape. We are delighted to present the 14th edition of our annual survey, which delves into the following areas:

            Review of the 2023 market performance
            Insurer approaches to risk appetite, premium rates, and limit availability
            Analysis of claims activity
            Projections for the 2024 Market Outlook
            Trends in employee benefits liability for design firms
            Mitigation of emerging exposures linked to AI innovation

This year’s survey includes responses from underwriting executives at 17 leading insurers providing A/E professional liability insurance. On a combined basis, they represent a significant percentage of the current overall marketplace for this line of coverage. Participants in the 2024 survey were: AIG/Lexington, Aspen, Beazley, Berkley Design Professional, Berkshire Hathaway Specialty Insurance, Euclid/Nationwide, Everest, Great American Insurance Company, Hanover Insurance, The Hartford/Navigator, Liberty Mutual, PUA, RLI, Riverton/Hudson Insurance, Sompo International, Travelers, and Victor Insurance. We are thankful for each insurer’s participation and are pleased to share the findings in our report.

          Please download your complimentary copy of the survey TODAY!