(Rolling Meadows, IL, Economic & Insurance News by Insurance Market 360) - Covid_19 affected Employment Practices Liability Insurance (EPLI) pricing and it is expected to continue in 2021 according to a report by Risk Placement Services.
Manny Cho RPS EVP, Executive Lines, opined that, “in order to obtain and maintain profitability, carriers are not only looking for rate adequacy but also, limiting their exposure through reductions in capacity”.
California, Illinois (Chicago) and New York are experiencing a jump in prices due to Covid. Other industries like hotels, restaurants and travel are deeply affected with EPLI rates. Sensitive analysis is done on EPLI Underwriting especially on private insurers regarding the impact of Covid, financial health of the organization, health and safety of employees and stability of the company.
Cho added, “At the onset of COVID, underwriting questions were related to a business’s reopening plans and the safety protocols in place to ensure employee safety”. Further scrutiny is also done on the operations, expansion plans and recruitment policy of the company to gauze their business stability and risk management.
In December 2020, the U.S. Equal Employment Opportunity Commission (EEOC) released short document pertaining to vaccine administration, disability factors and religious beliefs to private insurers in addition to risk mitigation, work environment with safety measures.
It’s important for agents to help clients facilitate a decent insurance opportunity by deeply understanding the personal, professional and financial status of a client.
Insurers are exploring opportunities in financial services and technology in spite of all odds. Situations might have affected the underwriting procedures, but there is always scope to expand and explore.
Source: www. rpsins.com