January 28, 2021

(Arlington, VA, Economic & Insurance News by Insurance Market 360) – Insurance market place reality report of 2021 on NASDAX by Willis anticipates that the premium cost for commercial Insurance in every segment could be high in 2021. Business uncertainties, risk factors, manmade and natural calamities in addition to the ongoing pandemic all are contributing their share in the premium hike.

Study was done on various business activities related to environment, commercial liabilities, workers compensation, automobiles, director and officers Insurance and cyber market. Challenges are noticed in every sector and time is to assess the situation and bounce back to stabilize. Statistics on the website of Willis disclose that out of 17 sectors, Excess and Workers compensation are on the extremes with +150% and +4%  with respect to the premium range projections of 2021.

Joe Peiser, global head of Broking, Willis Towers Watson expressed,” “We have to look back to the defining hard market crisis of the mid-1980s to see market conditions of the proportions we are currently experiencing — one of double- and triple-digit rate increases in most lines of business and dramatically reduced capacity in key lines,” He added that, “However, our experience in this hard market is that there is a wide range of results; renewal results are not huddled around the mean. This means underwriters are underwriting, and there is the opportunity to differentiate your risk.”

In spite of all the odds, Commercial Insurance sector can cope up and stabilize by remodelling to the prevailing situations with the support of credible analytics, authentic data and systematic negotiation strategies!

Source: Willis Tower Watson

Reference: https://www.willistowerswatson.com/en-US/News/2020/11/commercial-insurance-buyers-can-expect-hard-market-conditions-to-continue-throughout-2021