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Up, Up, and Away…

By March 9, 2021March 24th, 2021Insurance
Market rates are rising, while availability of markets and limits of insurance are decreasing.

We are in what our industry refers to as a ‘hard market’, meaning pricing is increasing and availability is decreasing. This article from Business Insurance outlines the fact that each line of coverage in Q3 2020 saw an increase. A number of factors contribute to this market, including but not limited to catastrophic weather losses, reinsurance pricing increases, and a trend towards higher awards, judgements, and settlements on liability claims.

D&O rates increased by 11.5 percent, followed by umbrella and excess liability up 8.5 percent in a quarter in which the average rate increase was 6.25%, MarketScout said in a statement. The average rate increase in the second quarter was 4.8%. Workers compensation rates rose by 0.5% — the first increase this line of business has seen in over five years.
Credit: Business Insurance

Education… There are a number of ways you and your agent/broker can help mitigate or reduce rate increases. Below is a list of several ways risk management best practices allows underwriters to favorably price renewals/new business opportunities.

  1. Provide detailed explanation of prior loss history.
  2. Provide and implement risk transfer agreements/contracts.
  3. Provide documentation of safety training/safety programs.
  4. Provide directed care/return to work programs (work comp related).
  5. Provide other market options when significant rate increases are based on a carrier’s lack of appetite/desire to get out of a specific industry.
  6. Provide attention to detail on your company’s Total Cost of Risk (see article here)

Please simply send us a note if this is something you want to discuss further! If your insurance renewal takes place between late November-early March, now is the time to start a conversation! Email me at: