Today’s Market: Year in Review
Chaos creates disruption and there has never been a more chaotic time than now. Across the insurance markets considered in this third quarter report, nearly all are firming or hard. The trend toward flat or higher rates that begin in late 2019 and accelerated through the first half of 2020 was, in many cases, exacerbated by the coronavirus pandemic. In some markets, such as Casualty, poor underwriting results stemming from non-pandemic related issues are driving the firming. In others, such as Workers’ Compensation, Cyber and Executive Risk, the pandemic has contributed to more claims, higher rates and further hardening. Carriers in many markets are cautious on renewals and it is imperative for Insureds to begin the renewal process early and maintain constant communication with underwriters throughout it.
Accountants Professional Liability
The general trend toward flat to higher rates that began earlier in the year continued through the summer and into third quarter renewals. Firms with losses saw more severe rate increases and/or retention changes, while firms with favorable claims history and a significant increase in revenues achieved only minor rate adjustments. Due to higher revenue growth, any firms renewing at flat to lower rates were also paying significantly increased premiums. Risk selection and capacity placement continued to be scrutinized by Insurers, with the London market seeking more aggressive rate action while dealing with capacity issues stemming from their unique restrictions on annual premium income levels.
Architects & Engineers
The market is continuing to firm, following a relatively stable, but hardening, trend. There is an invigorated interest in insurance for Paycheck Protection Program (PPP) loan forgiveness exposure. Recent renewals continued to span a broad range of outcomes. In one example, there was a non-renew attempt by a market on a Workers’ Compensation program with a zero percent loss ratio. Overall, underwriters are requesting more in-depth information at renewal.
Professional Liability renewals with international risks are firming as well, led by the London markets. Virus exclusions are beginning to emerge.
The Aviation insurance market continued to tighten significantly, following a hardening market throughout the first half of 2020. Carriers refused to write certain classes of business, such as piston engine overhaul shops and commercial helicopter operators, and most renewals saw increases of 20% to 30%. Coverage continued to be limited, with liability limits cut by 50%+ on some risks, such as owner-flown aircraft and helicopters.
Greater underwriting scrutiny across all lines of Aviation coverage has increased further with minimum increases of 20% to 25%, and up to 50% to 100% for high-risk operations. The rotorcraft sector has been hit particularly hard, with high-profile losses a contributing factor.
Although many airlines have returned to some level of operation, demand is still very low. Most aviation-related businesses continued to experience a significant bottom line impact. Many ancillary coverages and no-claims bonus clauses, as well as excess auto liability and excess employer’s liability, are being eliminated from Aviation policies. Pricing is expected to escalate through the rest of 2020 and well into 2021 across all lines of Aviation insurance.
Firming in the Casualty market accelerated in 2019 and continued through the first half of 2020. This has been due to poor underwriting results stemming from historical underpricing, lack of underwriting discipline, rising loss ratios and reserve deterioration.
Markets continued to tighten underwriting guidelines, non-renew poorly performing risks or exit the Casualty market altogether. Umbrella markets continued to scrutinize deployment of limits, and reduced volatility by decreasing capacity and increasing attachment points. Excess Casualty markets continued to impose substantial rate increases after almost a decade of flat premiums. In the third quarter, renewals experienced rate increases as follows:
- Auto Liability: +10% to +30% or more for higher hazard risks
- General Liability: +10% to +15%
- Workers’ Compensation: +3% to +5%
- International Casualty: Flat to +5%
- Umbrella Liability: +25% or more for higher hazard risks
- Excess Liability: +50% to +150% or more for higher hazard risks
Clients in financial distress requested mid-term exposure reductions with varying degrees of success depending upon the insurer and line of coverage. In some cases, underwriters were reluctant to consider reductions as the long-term impact of the pandemic is still uncertain. Furthermore, higher policy minimum earned premiums have hampered the ability to obtain premium relief.
Businesses providing essential services continued to see a greater level of underwriting scrutiny. Due to the financial instability of some Insureds, markets have been more conservative as respects collateral requirements on large deductible program structures.
There has been a significant increase in Workers’ Compensation claims reporting due to enhanced reporting requirements in states that have enacted COVID-19 presumptive laws. Further, there may be an increase in Employers’ Liability claims from employees passing the virus on to family members with co-morbidities.
The impact of COVID-19 on third party liability claims remains to be seen, as it will be challenging to establish causation due to the insidious nature of the virus. Nevertheless, companies are preparing for potential liability claims in anticipation of a second wave of coronavirus cases, which is now approaching.
The pandemic may appear to be exacerbating the hard market, but years of high excess losses, aggressive litigation trends, and adverse results are driving prices higher and tightening capacity in the Excess Casualty insurance space.
The firming trend of the past year accelerated in the third quarter. Auto Liability rates continued to rise, and there has been increased scrutiny of hired and non-owned auto exposures, requiring supplemental applications to assist underwriters in quantifying this risk. General Liability rates have gradually risen from the previous soft market. The current litigious environment will have an impact going forward and a market correction is anticipated.
An uptick in Workers’ Compensation rates occurred in July, and continued through the third quarter. These increases are attributable to a continued rise in medical cost inflation combined with a prolonged low interest rate environment and evolving presumptive legislation relative to the pandemic.
The Umbrella market continues to deteriorate as Auto Liability and General Liability claims increase in severity. This is exacerbated by social inflation and increasing anti-corporate juror sentiment. Without substantial tort reform, this trend is expected to continue unabated.
The trend of limiting capacity to $5M, $10M or $15M in the lead umbrella layer continued. Excess markets were more mindful in the deployment of capacity and it was common to see limits cut back to $10M or $15M in order to control the volatility in Insurer portfolios. Capacity remained available but it became increasingly difficult to complete larger excess programs due to constricted capacity and rising minimum premiums. This made it necessary to tap into previously uncompetitive global capacity.
No class of business seemed to be immune from the current rate environment; however, Transportation, Habitational Real Estate, Hospitality and Wildfire Exposed risks experienced the highest increases. Furthermore, industries with higher/elevated sexual misconduct or chronic encephalopathy (CTE) exposures, such as public entities and educational institutions, experienced decreases in capacity.
Umbrella markets continued to carefully scrutinize attachment points. Auto Liability has seen the highest increase in attachments, varying by the size and scope of fleets as well as loss experience. Auto attachment requirements can range from $2M to $10M. General Liability attachments rose, with $2M attachments becoming more common.
Coverages, Terms & Conditions
The market is tightening coverage by limiting coverage enhancements and adding Occupational Disease and Communicable Disease exclusions on General Liability and Excess programs. Classes of business that have been impacted by these exclusions include Healthcare, Retail and Hospitality. A trend of adding Human Trafficking exclusions on Hospitality risks was noted.
Alternative Risk Transfer Strategies
In an effort to mitigate premium increases, clients explored the impact of higher retentions, corridor deductibles, clash deductibles, variable retentions, multi-year single aggregates and captives (i.e., single parent, group, industry, and rent-a-captives).
Shortening the Tail
For long tail risks, converting from occurrence (“forever paper”) to claims-made coverage has been utilized to mitigate premium increases.
In spite of the contraction in capacity on Umbrella and Excess layers, there has been little to no corresponding reduction in premium. Pricing of excess towers is no longer driven by rate relativity, but rather by a minimum cost for capacity. For distressed classes of business, it was not unusual to see double the premium for half the limits. Some Insureds elected to retain more risk or purchase fewer limits in response to rising premiums.
We expect rates to continue to rise throughout 2020 and 2021 as loss trends outpace rate increases. Stewardship meetings are increasingly important to keep clients apprised of market conditions and to manage renewal expectations throughout the client’s organization.
Many Insureds have experienced significant exposure reductions, and therefore should review adjusted exposures and attempt to reduce minimum earned premium requirements at renewal.
Insurers continue to be flooded with interest in this rapidly changing market; therefore, submission quality is critical. Clients can make their risk more appealing by producing a complete, accurate and straightforward submission that is easy to understand. Submissions should demonstrate a strategy for the proactive mitigation of risks through comprehensive safety and quality control programs. It is advised to begin the renewal process early and maintain constant communication with underwriters throughout it.
The impact of the pandemic is still largely unknown on the Construction industry. While employment remained high through the first half of the year, the overall volume of construction starts was significantly reduced. An increase in rates and a reduction in capacity seems likely.
- Access to excess liability limits for annual programs and project policies continued to harden
- Outside of Workers’ Compensation and some specialty lines, the environment is pushing contractors toward high deductibles and more restricted coverage
- Increased underwriting scrutiny reduced the number of participating carriers on a previously benign risk
The Cyber environment began to shift in 2019 and into 2020, forcing a drastic increase in the frequency and severity of claims. New generation ransomware attacks, along with other cybercrimes, have since had a significant financial impact on Cyber Insurers. As a result, although capacity is still relatively strong, underwriting appetite is changing, and there is heightened attention to risk evaluation, tightening of coverage terms and price increases. On average, 10% to 20% increases occurred on large, complex risks, along with enhanced underwriting and tightening of coverage terms. The price impact has been less pronounced on smaller risks. Small to mid-size companies have experienced increased underwriting attention and tightening coverage terms.
Critical factors that have impacted the Cyber market and Cyber coverage include: growing tension between ransomware and OFAC (moral hazard of paying ransom); an evolving privacy regulatory landscape; gaps, overlapping risks and coverage stemming from the move to address silent cyber by the insurance market as a whole; the acceleration of cybercrime in the pandemic; and cyberattacks causing physical/bodily injury.
When the pandemic hit, the Employee Benefits marketplace shifted abruptly. Compliance became an urgent priority as federal and state government regulations were passed almost daily with significant action required by employers, who were balancing cash flow concerns, struggling with compliance complexity and trying to find ways to stay connected with vital employees.
The dual impact of quarantine and fear of exposure caused a material suppression of medical expenses. Some clients saw medical costs as low as 30% of the expected cost.
As renewal pricing begins to finalize, carriers have generally been conservative in estimating the impact of COVID-19. Run rate claims have been significantly reduced, although there has been a bounceback of medical and pharmacy claims, albeit not at pre-pandemic levels. It is difficult to predict when or if these claims will re-emerge. Most insurance carriers have been conservative in their pricing for Insured renewals and 20% to 30% increases are fairly common. The marketplace remains competitive, however, and increases can often be mitigated either with a competing Insurer or by using a lower bid to leverage down the incumbent carrier’s bid.
Increases have mainly been below 15% and often lower for self-insured plans. Medical trend has been in the 6% range. When adding margin related to claims suppression, low single digit to rate pass renewals have generally occurred. Stop loss renewal quotes were mostly in the 20% to 30% range, but depending on experience, the increases could be leveraged down. Large claim activity will significantly impact stop loss costs and these plans experienced larger increases. In some instances, carriers rescinded no new laser/rate cap provisions in the stop loss renewal.
Dental plans renewed flat or with decreases in premium, and dental carriers offered substantial incentives to self-insured employers to convert to insured rates with significant reductions. Clients are encouraged to seriously consider these insured offers, which often come with multi-year rates.
Employers focused on voluntary products to provide needed benefits without adding expense. Telemedicine (especially for mental health), employee assistance program (EAP) plans and paycheck lending were increasingly important. Employers seemed more willing to ask employees to assume responsibility for controlling healthcare costs by encouraging more cost-effective care alternatives and following proper preventive protocols. The focus remained on creating cost efficiencies without impacting benefits.
Moving forward in this dynamic market, captives, purchasing groups and alternative risk arrangements, such as direct contracting and referenced-based pricing, will be given more consideration. Individual Coverage Health Reimbursement Arrangements, which were new to the market as of 2020, will be evaluated by many employers. The focus will be on data transparency and data analysis.
While many business interruption and disinfection expense claims were tendered but not accepted by Pollution Insurers, many Insurers introduced new exclusionary language (i.e., where communicable disease threats were not already excluded). Some early coverage positions related to the pandemic have been actively challenged. It is still too soon to reliably predict the ultimate impact of the pandemic on any one Insurer or the overall Pollution marketplace.
Environmental Insurers avoided the healthcare industry and renovation risks and thus significantly limited competition. Some Insurers reduced available capacity, which impacted some layered programs.
Generally speaking, most Insureds with favorable loss experience did not experience significant coverage decreases or price increases. Those with large portfolios, complex risks, and/or otherwise difficult-to-move programs were subjected to rate increases, and those risks with poor loss experience were often re-underwritten, with all aspects of the policy potentially subject to revisions and restrictions. Insurers evaluating new business have been increasingly disciplined.
The Executive Risk insurance market has steadily firmed since 2019. The pandemic accelerated and intensified the movement into a hard market, the impact being felt by public and private companies in most industry verticals. Public companies and entities operating within certain industries hard hit by the pandemic (i.e., Hospitality, Retail, Entertainment and Transportation) have been most impacted. In addition, Directors and Officers (D&O) Liability and Employment Practice Liability (EPL) have been hard hit. Political, economic and social uncertainty has kept prices and retentions high and terms, conditions and capacity tight.
Insurers have been more selective in capacity deployment, with reduced limits or an unwillingness to take primary or low excess positions on large towers. This has complicated program structure and created the potential for claim handling challenges. Some carriers have retreated entirely from writing new business or pulled out of specific industry classes, such as Retail, Hospitality and Transportation. This dynamic has had many policyholders exploring captives and trusts as possible alternative risk transfer mechanisms.
Some markets have introduced broad COVID-19 exclusions or other terms, or conditions intended to limit exposure under a particular product. Bankruptcy-related exclusions or trustee/creditor exclusions have been proposed, and carriers offering EPL have tightened terms and conditions related to Reduction in Force activity and privacy exposures.
Retentions and deductibles have increased significantly across most classes of business. For the foreseeable future, Executive Risk lines of business should expect steep price increases, capacity decreases, enhanced underwriting and coverage restrictions.
Overall, the underwriting process has required a greater degree of strategic thinking as well as more time and attention by all parties involved. Supplemental applications and questionnaires have been presented to policyholders to complete at renewal or in connection with a new business application.
Critical factors in the Executive Risk market include: board diversity class actions; recent social movements on employment and D&O claims; economic factors (i.e., unemployment rate, bankruptcy filings); focus on ESG (Environmental, Social and Corporate Governance Factors); acceleration of cybercrime; social inflation; and growth of the litigation funding industry.
Since the start of the pandemic, premiums have continued to rise across the Hospitality sector. Underwriter referral processes continued to be backlogged. Hardening conditions have continued to accelerate. Insurers remained fearful of Business Interruption claims, and empty restaurants and hotels. All accounts have been underwritten individually and risk management accounts experienced some dislocation in rates. With Workers’ Compensation rates continuing to harden, the months ahead could continue to be difficult for Hospitality sector.
Lawyers Professional Liability (LPL)
Despite demonstrable rate gains last year in the LPL market, there has been continued concern over the ability to achieve an underwriting profit at current rates. Large firms with 200 lawyers or more faced another round of 7% to 10% rate increases. Midsize firms accessed more abundant capacity to keep rate increases in the 2% to 5% range, and Lloyd’s rate increases ranged from 10% to 15%.
The pressure toward higher rates maintained momentum in the LPL segment for Errors & Omissions and ancillary lines of Management Liability, EPL and Cyber Liability. Lloyd’s, Bermuda and Domestic markets have become more conservative on risk selection and continued to restrict limit offerings in an attempt to manage their exposure to severe loss. Self-insured retentions and deductibles have also been subject to scrutiny. The scope of coverage offered remained broad.
LPL underwriters are braced for an increase of professional liability claims that typically follow economic downturns. Firms should be prepared to provide underwriters an understanding of what they have done to avoid shut-down related claims, preserve business continuity and communicate with clients.
The Ocean Cargo market continued to show its resiliency, with Cargo rates up 7.5% on average. CAT-exposed risks and accounts with poor loss experience continued to see rate increase up well over 20%. Static risks (goods in warehouse/retail inventory) witnessed some amelioration in rate increases with additional capacity being released. The need for more quota share policies continued to exist. Cargo exposures, in the face of COVID-19, linger on with many commodities. Food and household goods demonstrated very strong results.
Hull & Machinery/Protection and Indemnity/Excess Marine Liabilities
Capacity showed some strength as rates moved north within this sector. The Excess Liability excess of $1M market continued to experience significant pricing increases and reduced capacity, especially in the London market. Marine markets will continue to drive rates up, tighten terms and impose geographical restrictions as they seek to improve results.
The global Medical Professional Liability marketplace felt a swift paradigm shift following years of soft pricing and escalating losses across the U.S. Overnight, underwriters seemed to focus on profitability rather than growth. The coronavirus created uncertainty including the lack of a unified Federal response. This resulted in some underwriters putting a moratorium on new business. Other carriers delayed quoting on renewals.
Underwriters selectively deployed capacity with limits of $25M reduced, in some cases, to $10M or less. Minimum rate and premium increases ranged from 5% to 15%+, depending on venue for accounts without losses; and 15% to 30%+ for accounts with large losses impacting excess layers, which were more heavily affected in part because of batch claims and an increase in claim severity. Self-insured retentions required an actuarial evaluation, but clients without excess losses were able to maintain expiring retentions (except for batch claims).
Batch claims were subject to higher self-insured retentions. Insureds with large losses impacting excess layers evaluated the benefits of increasing their retentions to mitigate any premium increase. Aggregate retentions continued to be more difficult to obtain and if offered, were multiples of expected losses.
In order to address potential “batch” claims, some markets added sexual misconduct and controlled substances exclusions. Similarly, some added a pandemic exclusion. The inclusion of the pandemic exclusion was not universal, however, and was determined on a case-by-case basis.
Underwriters’ return to profitability translated to increased scrutiny on all submissions with a particular focus on managing coronavirus exposures, opioid policies, plans for managing growing physician populations, technology and litigation management.
Zurich’s announcement that it will no longer write Medical Professional Liability insurance as of November 1, 2020 will add to the turbulence of the market. An evolving and challenging Medical Professional Liability marketplace is expected for the next two to three years. The market can change quickly though, depending on progress toward containment of the pandemic, the potential for national tort reform, control of medical cost inflation and, perhaps, the introduction of new capacity. Until then, clients should be prepared for a rocky road ahead.
Personal auto results and rates remained stable. Many carriers extended coronavirus discounts through each state’s stay-at-home period, but this has ended. The renewed wave of infections with the potential for stay-at-home orders may or may not mean additional discounts in the future. Work-from-home initiatives are beginning to impact annual mileage, a factor in auto premiums. The overall impact on auto is likely +2% to +3%, largely based on new cars and the hope that people would emerge from stay-at-home restrictions. Reduced driving and loss costs could result in lower premiums in 2021.
Homeowner rates generally increased 6% to 8% in most markets due to increased costs of construction and availability of skilled labor. Climate change is creating unprecedented market conditions in California and other western states due to wildfire risk, and in south Florida and coastal areas up the eastern seaboard due to hurricanes and associated wind. Capacity and availability are a major issue in high-risk fire areas. Rate increases in some cases have been dramatic. Homeowners in need of a new market may find rates five times or more of expiring rates. Similar issues are occurring in the tri-county area in southern Florida (i.e., Miami-Dade, Palm Beach and Broward counties).
The high net worth specialist Insurers (i.e., Chubb, AIG, PURE, Cincinnati) have shifted new business to Excess and Surplus companies in these troublesome areas; however, there is not enough E&S appetite to go around. Depending on how this issue is viewed, it is either a big problem or an incredible opportunity. The immediate future will be painful in these areas for consumers, brokers and carriers.
The third quarter saw a continuation of the steady firming that began in February of 2019. Underwriters have captured rate as they have moved pricing, terms and conditions closer to what their “technical underwriting” standards dictate. Although a record-breaking year of Atlantic hurricane activity is occurring, a major storm has not yet directly hit a major metropolitan area. Besides hurricanes, a devastating derecho swept through the Midwest and wildfires continue to plague California, Colorado, Oregon and Washington State.
Major catastrophic events and their anticipated costs occurring in the U.S. this quarter include:
Many carriers have cut back significantly on capacity being offered at renewal, creating potential program gaps. Many large shared and layered programs have significant 100M+ holes to fill. This cutback in capacity has directly impacted renewal pricing, as the days of plentiful capacity to use as a leverage tool to blunt rate increases from incumbent carriers are gone.
Restrictions in first party Cyber, Contingent Time Element, Convective Wind and Communicable Disease coverage continued. Increased scrutiny has been placed on Civil Commotion coverages in reaction to the protests and rioting.
Some carriers have imposed minimum deductibles in certain classes, such as minimum deductible levels for water damage in hospitals, hospitality and commercial residential properties. Underwriters are looking to convert flat dollar time element deductibles to a number-of-days multiplied by a daily time element value for some manufacturing risks. Wind, flood and wildfire perils are all seeing increased deductibles.
Rate increases were similar to those experienced in the second quarter of the year. Profitability now overshadows new business growth goals. Capacity that was considered too expensive in the past is now often needed to complete a program, driving up the overall price. Third quarter property renewals saw average rate increases of 5% to 25% for properties with no losses and not CAT-exposed; 15% to 50% for CAT-exposed properties; and 25% to 60% for properties with losses and CAT exposure.
The combination of numerous gross domestic product (GDP) components ceasing operations and a limited number of construction projects deemed essential has created flat results. In fact, no changes in the market are expected through the first quarter of 2021.
In the current environment, essential public works projects are still being bid and funded by previously approved budgets. Privately funded work has slowed down, with many owners taking a wait-and-see approach to publishing any bid schedules for future projects. Housing projects already in progress have continued, but with some limitation on the number of laborers onsite. There has been very little new project construction.
Larger commercial clients may use surety bonds to protect their cash holdings with better credit terms from surety companies than what they currently have with banks. Anecdotal evidence shows many companies have asked for terms and conditions for Surety programs; the full effect of new programs will be seen later in the year.
Surety business is a relationship business, and this is a good time for knowledgeable customers and brokers to enhance and expand their relationships with bankers, CPAs and especially Surety underwriters. A proactive approach must be taken with underwriters as this is the only controllable action clients and brokers can take to be unaffected by any general changes in rate and capacity.
Technology & Life Science – Middle Market
The Middle Market Technology and Life Science market continued to efficiently manage a remote work environment as compared to many other industries. Some industry segments, such as lab and medical device companies, have experienced reduced revenue. In addition, because of shelter in place restrictions, many clinical trials had to be delayed due to complications related to enrollment and dosing subjects. In the third quarter, these issues somewhat subsided, and trials appeared to be moving forward. The Property & Casualty (P&C) market, which was already beginning to harden pre-coronavirus, hardened further for Directors and Officers insurance, with pricing varying widely from one carrier to the next. Carriers on these lines were cautious on renewals and, in many cases, had cut back significantly on capacity.
It is critical for Insureds to allow plenty of time to push underwriters for coverage offerings. While there have not been significant, systematic changes in coverages or terms and conditions, underwriters are requesting much more information related to coronavirus issues, business continuity and employment practices. Companies that cannot answer questions to underwriters’ liking are seeing denials to offer coverage proposals, or proposals with higher retentions and limitations of coverage.
|Line of Coverage||Rate Change|
|Rotorcraft/helicopters||+20% to +50% (+100% for high risk ops.)|
|Light Aircraft||+20% to +30%|
|Corporate Aircraft||+20% to +50%|
|Fixed Base Operators||+20% to +25%|
|Component Product Manufacturers||+20% to +30%|
|Aircraft Manufacturers||+50% or more|
|*All based on no loss history past 10 years|
|Auto Liability||+10% to +30% or more for higher hazard risks|
|General Liability||+10% to +15%|
|Workers’ Compensation||+3% to +5% or more with adverse loss experience|
|International Casualty||Flat to +5%|
|Umbrella Liability||+25% or more for higher hazard risks
|Excess Liability||+50% - +150% or more for higher hazard risks
|General Liability||Flat to +15%|
|Auto Liability and Physical Damage||+5 to +15%|
|Excess Liability/Umbrella (lead)||+25% to +100% (depending on expiring lead limit & assuming same limit on renewal)|
|Excess Liability/Umbrella (higher layers)||+20% to +100%|
|Builders’ Risk||+5% to +20%|
|Professional Liability||Flat to +10%|
|Contractors Pollution Liability||Flat to +5%|
|Project Specific Controlled Insurance Programs (Liability)||Flat to +25%|
|Cyber||+10% to +20%|
|*Rate increases appear to be less pronounced on the small, non-complex risks, at this time.|
|Directors & Officers Liability*|
|Private Company||+5% to +25%|
|Public Company||+25% to +50%|
|* Certain industry classes are experiencing higher rate increases in addition to retention increases|
|Insured Renewals||+20% to +30%|
|Stop Loss Renewals||+20% to +30%|
|Dental||Flat to slight decrease|
|Employment Practices Liability||+5% +25%|
|No Losses and Low or Medium-Risk Industry (class-A office; warehouse risks); most CPL business||0% - +5%
|Moderate-Risk Class or Complex Risk (mold/habitational; large portfolios; tougher CPL risks)||+5% to +10% (multi-year renewals) or up to +5% for annual renewals|
|Losses (frequency or severity) and/or High-Risk Class (heavy industrial; PFAS or other emerging risks)||+20%+; coupled with coverage restrictions (multi-year renewals) or up to +10% for annual renewals|
|General Liability||+10% to +15%|
|Property||+25% to +30%|
|Umbrella||+25% to +30%|
|Cargo including STP||+5% to +20%|
|Excess stock/warehouse ||+15% to +25% (when capacity is available)|
|Hull||+5% to +10%|
|Primary P&I ||+10% to +15%|
|Primary MGL ||+5% to +15%|
Excess of $1 million
|+20% to +25% (very limited capacity)|
Excess of $5 million
|+10% to +15%|
|Medical Professional Liability||+5% to +15% + minimum
+15% to +30%+ for loss impacted and difficult jurisdictions
|Auto||+2% to +3%|
|Homeowners*||+6% to +8%|
|*Homeowners in high-risk fire and hurricane/wind areas are seeing fivefold rate increases in some cases.|
|Accountants Professional Liability||0% to +15% depending on claims/revenue growth|
|Lawyers Professional Liability ||+2% to +10%|
|Overall Professional Liability||0% to +15%|
|Property||+5% to +25% no losses; not CAT-exposed
+15% to +50% CAT-exposed
+25% to +60% losses; CAT-exposed
|Surety (Construction and Commercial)||Flat|
|Technology & Life Science – Mid Market|
|Product Liability, E&O/Cyber||+7% to +12% no losses
|D&O and EPLI||+15% to +25% (clean, private company)
+20% to +50% (clean, public company)
Important disclaimer: the ranges above are macro observations only. Every risk is comprised of its own characteristics (such as industry, loss history, geography, etc.) that may impact renewal pricing.