From: Intelligent Insurer
A new report by broker Willis Towers Watson predicts that the US commercial insurance prices across every line except one will increase and the hard market conditions will continue throughout 2021.
WTW’s 2021 Insurance Marketplace Realities report found that the COVID-19 pandemic will continue to hurt the economies, exacerbating the hard market.
Willis said the insurance industry is expected to adapt to the continuing hard market by utilising analytics and data-driven tools to change the way both buyers and sellers approach the negotiating table when it comes to risk transfer.
For most lines, rate increases predicted in 2021 surpass those forecasted last spring. In the few cases where rate reductions were considered possible last spring, the best outcome buyers can hope for is flat renewals — with the exception of kidnap and ransom.
Across some lines, such as workers compensation, life sciences, terrorism, product recall and alternative risk transfer, flat renewals are possible, though increases will persist for many buyers.