Commercial insurance markets see rate hikes, capacity reductions and tighter insurance controls as an already hardening market responds to the effects of COVID-19-related losses, according to a report Monday from USI Insurance Services Inc.
Most lines are therefore expected to see continued rate hikes. fourth quarter.
Property limits see interest rate increases from 5% to 30% or more depending on loss history and disaster exposure.
Primary general accident and product liability is up to 10% to 20% while umbrella and surplus increase as much as 25% for average market accounts but as much as 75% for large accounts.
The primary car liability for fleets over 200 increases by 1
Coverage for public company directors and executives can increase up to 100% while private companies and non-profit D&O see smaller increases of 10 to 60%.
The markets for executive and professional risks increase by 5% to 20%. Employee compensation coverage varies from flat to down 10%, USI said.
A number of factors contribute to continued upward pressure, USI said.
"Continued uncertainty from potential COVID-19-related cases, higher than normal assessments, development of disaster losses and additional factors have insurers raising interest rates, lowering capacity, limiting or transferring risk and taking a tougher look at the risk profile," USI said . "Even insured persons with a lower risk profile are facing much closer insurance control as well as higher interest rates and retentions."
The rising market is expected to stretch into next year, USI said. "As the full scope of claims related to COVID-19 and other events remains to be seen, these market trends will continue until the fourth quarter and probably until 2021."
More insurance and risk management news about the coronavirus crisis here . Catalog