Willis Towers Watson — Commercial Rates Stabilizing

Willis Towers Watson released a report last week stating that commercial insurance premium rates have started to stabilize for most industries and coverage areas in North America.

The report is titled, Marketplace Realities and it found lots of capacity in most lines. That — WTW says — will lead to more competition and rate stabilization.

“Outside of excess casualty and terrorism, it has become a buyers’ market where clients are driving program improvements through coverage terms, program structure and price,” the report said.

  • Catastrophe-exposed property is down 5% to up 10%
  • Non-catastrophe-exposed property is seeing rates down 5% to up just 5%
  • In the domestic casualty markets rates rose from 2% to 8%
  • Umbrella insurance will see rates go up from 8% to 15%
  • High-hazard excess casualty saw rates go up 10% or more
  • Low-hazard excess is up 2% to 7%
  • Work comp will drop 5% to up 2%
  • Auto is forecast to rise 4% to 10%
  • D&O & private, not-for-profit insurance will go from flat to down 10%

Political risk is the one line taking a huge hit. Those risks are rising 10% to 40%

The terrorism and political violence, and sabotage lines in non-volatile areas will go from flat to up 10%. Areas where violence is being seen at times will see rates be flat to up 15%. Areas where violence is common will be up15% to 30%.

Source link: Business Insurance — https://bit.ly/3WR1EYN

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