Risk Strategies & a Prediction — Another Year of Rate Hikes

Risk Strategies is a brokerage based in Boston. It took a long look at commercial insurance rates in the company’s annual State of the Market report. The bottom-line of the report is that all lines of commercial insurance will see a continuation of the rate increases we’ve seen the last couple of years.

For some lines those jumps will be double-digit.

While lines like troubled workers compensation and surety will see renewals that are flat, expect huge hikes for cyber liability and others. For cyber, rate rises could hit 30% on average with some clients seeing policy increases as high as 50%.

• Properties with average catastrophe exposures could see hikes between 10% and 20%
• Unfavorable high risk property risks rates might climb 25% or more
• General liability and auto liability will go up 5% to 10%
• Umbrella policies will see a 10% to 20% jump
• Private company management liability will rise 10% to 30%
• Public company liability will go up 5% to 30%

Risk Strategies CEO John Mina says those stats look bad but they’re not as bad as they seem. “Sustained rate increases have attracted new entrants and over time underwriting capacity will expand and rate increases stabilize,” he said.

Source link: Business Insurance — https://bit.ly/3Jejtao