Commercial property insurance markets have stabilized and commercial liability insurance rates are rising more slowly, according to USI Insurance Services Inc.
The USI, based in Valhalla, New York, said on Tuesday that non-disaster real estate accounts with a good history of loss, which renewed in late 2021 to a stable level of up to 10%, will switch to renewal. down from 5% to 5% in the first half. from 2021.
The broker said that while real estate markets are always volatile, buyers and policyholders differentiate themselves by risk. “We are seeing the market stabilize overall – and this benefits trade insurance buyers who maintain quality risk with solid data to back it up.”
The general liability and product lines, meanwhile, are expected to grow 5% to 15% in the first half of the year “with a growing number of policyholders seeing steady increases of 5% over the year,” USI said.
However, excess and blanket coverage continues to be “favored” and capacity is deployed on a selective basis. Rates are expected to rise 10% to 35% or more in the first half of the year, with smaller increases of 5% to 15% in the mid-market.
Cyber coverage is expected to increase sharply, from 40% to 50% for optimal risks and 50% to 100% or more for less optimal risks, as “ransomware attacks have continued to plague the cyber insurance market throughout. during the second half of 2021 ”.
For coverage of directors and officers of public companies, the primary is expected to remain stable at 20% in the first half of 2022, while the surplus is expected to decline from 10% to 10%.
Workers’ compensation lines have not been hit as badly by COVID-19 claims and are expected to drop from 5% to 5% for guaranteed cost and as high as 5% for loss-sensitive coverage.
“As we continue to see costs increase in some lines of coverage, the overall stabilization and improvement in capacity in the insurance market is cause for optimism,” USI said, adding, “We expect prices to flatten or even decrease for some coverage lines in 2022.”