Hardening market conditions will continue in 2021, although property increases will begin to measure at mid-year, and umbrella and board members 'and levels of responsibility will become more predictable then, although interest rates will continue to rise, Willis Towers' Watson PLC report said on Thursday.
Capacity from new ventures now coming online will have some dampening effect on these lines by mid-2021, especially D&O, says Joseph C. Peiser, Willis' global head of brokerage in the introduction to the report, Insurance Overview of the Marketplace Reality, 2021
According to the report, buyers can expect increases in all lines except kidnapping and redemption, where exposures have decreased due to pandemic ̵
Among the report's predictions:
– Real estate prices for non-challenging occupations will increase by 15% to 25% next year, up from 10% to 20% in the spring.
-General debt rates increase by 7.5% to 15%, from 2.5% to 7.5%.
-Umbrella / surplus increases from 30% for umbrella with low / moderate risk to 150% for high risk surplus.
– The employees' level of compensation decreases is flat, with a slight increase in responses to high levels of difficulty / surplus losses.
-Car rates increase by 8% to 15%, from 6% to 12%.
-D&O interest rates will increase up to 70%.
-Cyber insurance rate will increase 10% to 30%, up from 10% to 15%.