Industrial legal responsibility insurance tariffs are rising extra slowly: USI – Enterprise Insurance

Commercial property insurance markets have stabilized and commercial liability insurance rates are rising more slowly, according to USI Insurance Services Inc.

USI, based in Valhalla, New York, announced Tuesday that non-disaster-exposed real estate accounts with good loss history, which were extended unchanged to 10% in late 2021, will be extended 5% to 5% in the first half of 2021.

The broker said while real estate markets are still volatile, buyers and policyholders are differentiated based on risk. "We see that the market is stabilizing overall – and this benefits commercial insurance buyers who underpin quality risks with strong data."

General liability and product liability lines are expected to grow 5 to 15% in the first half of the year, "with a growing number of policyholders seeing increases of up to 5% over the course of the year," USI said.

However, over- and umbrella covers will continue to be "adversely affected" and capacities will be used selectively. Interest rates are expected to rise 10 to 35% or more in the first half, with smaller increases of 5 to 15% in the mid-market.

Cyber ​​coverage is expected to increase sharply, 40 to 50% for optimal risks and 50 to 100% or more for less optimal risks, as "ransomware attacks continue to plague the cyber insurance market in the second half of 2021".

Coverage for directors and officers of public companies is projected to increase by 20% in primary care in the first half of 2022, while excess coverage is projected to decrease by 10 to 10%.

Worker compensation lines have not been hit as badly by COVID-19-related claims and are expected to decrease by 5 to 5% for guaranteed costs and up to 5% for loss-sensitive covers.

"While we continue to see cost increases in some lines of insurance, the general stabilization and improved capacity across the insurance market are cause for optimism," said USI, adding, "We expect tariffs for some lines of insurance to be reduced in 2022."

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