February 03, 2021

(Washington, D.C., Economic & Insurance News by Insurance Market 360) –  Surprisingly, 71%, of contractors have scarcity of minimum one construction material in addition to 89% impact on business due to shortage of skilled labour, project delay due to pandemic and worker’s health.

Wood is the most non available material for construction. Though the index of Q4 is 60 points, 3 above than Q3 the net value of the year 2020 is less than 74 points aggregate. Chamber of Commerce Commercial Construction Index is analysed with Dodge Data by using survey obtained with various dimensions on a scale, 0 to 100.

Backlog, New Business Confidence and Revenue are considered for investigation in Q4. All of them have a positive improvement with 1, 4 and 2 points, than Q3 Index.

“The pandemic has exacerbated issues contractors were already facing in availability and cost of materials from tariffs and a shortage of skilled workers,” said U.S. Chamber of Commerce Executive Vice President and Chief Policy Officer Neil Bradley.

“The industry is a positive indicator of where the rest of the economy is going, but its likely confidence won’t fully return until companies and workers have the confidence to get back to work safely,” Bradley added. “That’s why the U.S. Chamber is urging lawmakers to come together before the end of the year on additional pandemic relief.”

Interestingly, 57% of builders are positive about growth in 2021 and many of them are planning to recruit more workers to accelerate the momentum.

Source: U S Chamber of Commerce

February 02, 2021.

(London, Economic & Insurance News by Insurance Market 360) – New Year marked a latest comprehensive initiation by Lloyds to gear up the economy. In its latest vision, the premium insurance company announced to bring in reforms in inclusive working culture, global transition, accountable underwriting and investment and new policies in fossil energy sector.

Need based steps will be taken to set up an advisory group for gender rights and ethnicity by 2021.Company will allot 5% of its funds for investments related to net zero and action plan is expected by 2022 for the takeoff, 2025.

Company is aiming to procure 2% of premium income from innovative and long term insurance sales in next two years with an idea to cater the needs of fossil fuels such as: thermal power, coal mines, oil sands and arctic energy which will be a good source, renewable energy.

Andrew Brooks, Chairman of the Lloyd’s Market Association said: “We are fully supportive of Lloyd’s ambitions to set out a path in which the market can work together to support our customers globally on their transition to a more sustainable future. As a market we must act decisively now and play a more effective and proactive role in supporting positive societal change.”

Initiations are taken on par with UNs sustainable development goals and the company is also expected to play a key role in addressing climate risk insurance and United Kingdom’s ten points plan.

Source: Lloyds Company

Reference: https://www.lloyds.com

January 29, 2021.

(Washington, D.C., Economic & Insurance News by Insurance Market 360) -Shortage of construction material and challenges to meet the demand declined the sales of new homes in November 2020 as per the latest report of US Department of Housing and Urban Development and Census Bureau. Single built home sales went down by 11% in November 2020 which is 20.8% more than same time last year. The projected and corrected value of 841,000 sales is the total completions in the next 12 months.

NAHB Chief Economist Robert Dietz expressed, “The home building industry saw a historic gap between the pace of new home sales and construction of for-sale single-family housing this fall,”

According to the latest reports, a reasonable increase of 4.1% observed in the construction materials log in the last four months’ with a target of 286,000 new houses for completion. It is 11.2% less than same period last year. But, the number of houses completed is only 43,000.The average new house sale price increased by $7,300 than the previous year. On the whole, rise is witnessed in all the four directions of the region in the new house sales: Northeast (28.2%), Midwest (24%), South (16.9%) and West (20.5%)

“Though the market remains strong, the pace of sales pulled back in November as inventory remains low and affordability concerns persist as builders grapple with a shortage of lots, labor and building materials,” said NAHB Chairman Chuck Fowke.

Source: National Association of Home Builders

Reference: http://nahbnow.com/

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

January 27, 2021.

(Los Angeles, CA, Economic & Insurance News by Insurance Market 360) -The decision of Insurance Commissioner Ricardo Lara’s approval to exempt 347K policy holders of Los Angeles from annual premium of 2020 against Bobcat fire brings up the total beneficiaries to 2.4 million against the holocaust in California. The resolution was taken with reference to the Governor Gavin Newsom’s official announcement on 25 September 2020 and in continuation of the law attested by him in 2018 to wave premiums as a timely exemption and relief from wildfire exigency.

R Lara expressed, “California’s devastating wildfires have affected millions of residents, and the last thing they need is to have to search for new insurance while they are still recovering,”.

He added, “By pushing the pause button on non-renewals, we will give breathing room to wildfire-scarred communities and homeowners as we all adapt, take steps to mitigate risks, and find further solutions to help stabilize the insurance market.”

Los Angeles County Supervisor Kathryn Barger appreciated the efforts of the executive in safeguarding millions of his state residents against ongoing sensitive situations.

Departments of Insurance, Forestry and Fire protection and Governors Emergency services will be on the task to trace out the limits of the obligatory deferment region and also to finalize the dimensions of Mount view fire on Mono, Oak fire in Mendocino and Slater fire in Del Notre regions which are included in the latest law.

Premium relaxation will be in force for a period of one year to all the communities mentioned on the portal of Insurance department, California.

Source: California Department of Insurance

Reference:http://www.insurance.ca.gov/0400-news/0100-press-releases/2020/release132-2020.cfm

January 26, 2021.

(Arlington, VA, Economic & Insurance News by Insurance Market 360) – Survey conducted by Willis Towers Watson, the leading Global Consultants with 36 commercial Insurers reported that the premium cost is increased by 10% on aggregate in the third quarter of 2020. The participated companies hold a share of 1/5th of total trade insurance policies. Examination was conducted on the premium rate for the same coverage in the third quarters of 2020 and 2019.

Major increase is observed in Excess/Umbrella directors and officers risk coverage. Trade Automobiles witnessed consecutive twelfth two digit increase while reasonable improvement is seen in Outlier in the last consecutive seven quarters. There is no significant change observed in small scale commercials but two digit excess is found in medium and big size commercial insurance premiums.

In this regard, Yi Jing, director, Insurance Consulting and Technology, Willis Towers Watson opined that, “While commercial insurance prices continued to rise this quarter at a significant rate, CLIPS data indicate the acceleration in prices observed in recent quarters stabilized somewhat,” Further,  “The price change level holding steady occurs despite the tethering impact of past workers compensation price reductions waning.”

Concept of CLIPS is all about analysing and review of the past data, business activities, general insurance cost and policy settlement ratio including the cost inflation of the claims. Further details regarding the price variations can be procured from the official portal of the lead agency, www.willistowerswatson.com

Source: Willis Towers Watson

Reference: https://www.willistowerswatson.com/en-US/News/2020/12/US-commercial-insurance-prices-again-increase-significantly-during-Q3

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