The insurance industry as we know it was created in 1686 by Edward Lloyd in his coffee/tea shop. Our friends across the pond arguably know more about our domestic insurance marketplace than the underwriters here. The article below is a nice analysis of how they view the marketplace today, with a focus on casualty.
We are seeing dramatic increases in both premiums and retentions on specialty casualty lines of insurance (employment practices, directors and officers and professional liability). It is especially volatile in California.
Make sure you budget accordingly. Loss history dependent of course, but minimum 10% +
“According to the underwriters, there are the usual suspects responsible for today’s market conditions, including years of poor results, social inflation, litigation funding, the current economic recession and uncertainty over the effects of COVID-19.
“The tort environment has suddenly become very challenged. In addition to that, we’ve got a lot of back year loss deterioration on people’s portfolios,” said Aspen’s Bland.
— Message is to make sure you give proper time to correct client company pricing with the understanding of with increased terminations, furloughs, wage reductions… the lawyers will follow and claims thereafter.
Let us know if we can be of help.