Insurance Market Update

We are in the midst of a correcting market. 

High aggregate loss ratios since 2013, underpriced risks, and lack of adequate rate increases (until recently) lead to a hardening market. The COVID-19 pandemic has escalated the matter. Notably, we see issues in D&O, EPLI, and Medical Malpractice E&O markets where there is as much as a 60% rate increase in some cases to non-renewal in others. Here are some specific industry trends we have observed. 
Directors & Officers Coverage (D&O)

• Claims: Rise in class action lawsuits
• Premiums: Dramatic rate and retention increases 
• Underwriting: Restricted guidelines

Professional Errors & Omissions Coverage (E&O)

• Claims: Anticipate increased healthcare and other COVID-19 related claims
• Premiums: Increased healthcare premiums 
• Underwriting: COVID-19 exclusions and non-renewals

Employment Practice Liability (EPLI)

• Claims: Dramatic increase in claims relating to leave, layoff, alleged wrongful termination, and retaliation.  
• Premiums: Spikes in rate and retention in some classes and states.
• Underwriting: New business moratoriums and COVID exclusions, prominently restricted for classes impacted by COVID-19 including event management, fitness facilities, healthcare, hospitality, retail, etc 

We are here to help you secure coverage that suits your insured’s needs. 
To improve our success and reduce your stress. 

• Reach out to your insured at a minimum of 30-days before their policy termination (sooner is better). 
• Educate your clients, so they are prepared.  
• Let me know if you would like articles to share. 

We have survived challenging markets in the past, and together we will overcome these hurdles as well. Please contact us with your questions, requests for articles/resources, and other concerns so we can help you get the best results.