After an initial spike in commercial property insurance rates due to record catastrophic losses in 2017, we are finally seeing reprieve. This is not to say that we are not still facing upward pricing pressures on many lines of business for the remainder of 2018.
The industry's swift recovery following 2017 losses without widespread hardening or any insurer insolvencies indicates a "new level of resilience," said Joe Peiser, head of Broking, North America, Willis Towers Watson. Overall, the property/casualty marketplace remains well capitalized.
According to Willis Towers Watson's 2018 Insurance Marketplace Realities-Spring Update report, most buyers can expect their insurance to rise in 2018, although not as dramatically as some expected last quarter. Individual lines of business are undergoing a combination of price increases and price decreases.
The WTW spring report also acknowledges several lines of business where pricing has changed direction since their November report. For directors and officers liability, many buyers will now face increases of up to 5%. The environmental sector is experiencing its first hard market in over a decade. Buyers could face rate increases as high as 20% for site pollution liability coverage.
"Navigating this dynamic marketplace demands a strategic approach, and buyers facing renewals should focus on creating submissions using distinguishing data and narratives to set themselves apart from their peers," advises Peiser.
Read the full article and check out spring report highlights along with price predictions for the remainder of 2018 here .