Here are a few highlights from our most recent quarterly commercial insurance market update. For the full report, scroll to the end of this post and submit the brief form.
Many Insureds Will Feel the Results of a Hardening Property Insurance Market
Significant catastrophic losses, insurer capacity reduction, and a lack of completed loss control recommendations continue to fuel a hardening property insurance market. These variables have created a range of pricing that may reflect two- or three-digit increases.
Umbrella Capacity Is Becoming More Expensive
A highly organized plaintiffs’ bar is using advanced litigation tactics to appeal to juror emotions, resulting in unprecedented liabilities for defendants and a desire to make a statement about corporate social responsibility. Also, the frequency with which punitive awards are accompanying compensatory awards is up 20% since 2014. While many cases are settled on appeal, a punitive award puts significant pressure on a settlement and inflates the value of the case.
Environmental Regulatory Scrutiny Could Bring Changes Soon
There is growing concern with per- and polyfluoroalkyl substances (PFAS), a group of man-made chemicals used frequently in manufacturing and other industries that don’t break down over time. Earlier this year, the House of Representatives passed legislation to classify PFAS as a hazardous substance under CERCLA. With this listing, we expect that PFAS will be an excluded contaminate for relevant target classes.
If you have questions about your commercial insurance, contact your Hylant service team member or your local Hylant risk management expert.
The above information does not constitute advice. Always contact your insurance broker or trusted adviser for insurance-related questions.
YOUR FREE REPORT
Helping you stay informed of trends in the market is just one of the ways we show our commitment to you and your business. To download your complimentary copy of “Market Update: Commercial Insurance State of the Industry, July 2019,” and to receive similar information in the future, complete and submit this form.