Our newly released Market Update report summarizes the latest insurance market news, pricing and coverage trends, industry issues and overall outlook. To download the report, scroll to the end of this post and request your copy. Here are a few highlights.
Cyber Pressures Increase
While there is still plenty of capacity in the marketplace and more types of coverage are available, the increase in cybercrime (33% increase in breaches in just the first three quarters of 2019 alone) is putting pressure on rates. For clients with claim activity, underwriters are looking at the lessons learned and how organizations are modifying their risk management processes and preparedness plans. The industries most at risk include healthcare, retail and public entities.
Representation and Warranty Insurance Benefits Buyers and Sellers
Representation and warranty insurance (RWI) is used to transfer risk from both buyers and sellers to insurers in the course of large transactions. The number of RWI placements in the marketplace has grown dramatically in recent years. As awareness and understanding of this coverage increases, we believe that more buyers and sellers will insist on incorporating RWI as a requirement in purchase/sale agreements. The market is stable, capacity is abundant, and pricing is currently competitive.
No Relief for U.S. Property Market
Property insurance rates and premiums have increased for nine consecutive months, with more than 67% of accounts experiencing rate hikes for both catastrophic and non-CAT exposure risks. Carriers are focusing on profitability and are, due to the significant volume of requests, more often declining to provide proposals. Additionally, they may be providing non-renewal notices for unprofitable accounts, catastrophe exposures and certain industries. Projected rate increases are 10%-20% for a non-CAT property with a good loss history; 25%-40% for a CAT-exposed property with a good loss history; and 30%-60% for an account with a poor loss history—even greater if loss control recommendations haven’t been heeded.
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, January 2020, and to receive similar information in the future, complete and submit this form.