FLOOR ED
Property & Casualty Insurance Market Outlook and Proactive Steps You Can Take to Ensure a Smooth Renewal
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By Stacy Eickhoff Stacy Eickhoff is senior vice president for Risk
he 2020 insurance market has been the most challenging market I have seen in the last ten years. Before Covid-19, and as early as 2018, the insurance market was beginning to harden, with firming expected to continue well into 2022. Prompting the market’s hardening was significant catastrophic losses in 2017, 2018, and 2019 impacting property, nuclear jury verdicts affecting casualty lines, and the cost of reinsurance increasing. While 2020 losses have yet to be fully realized, an early fire season, a more active than normal hurricane season, and COVID-19 all but guarantee further market hardening. Reinsurance treaty pricing is up significantly in 2020, and mid-year Facultative reinsurance pricing was up approximately 40%. The Fitch Ratings 2021 Outlook on Global Reinsurance predicts a negative outlook for 2021, citing the reduction in global premium volumes, coronavirus losses, and ultra-low interest rates. Insurance companies will pass this cost onto their policyholders by increasing rates.
Strategies Company. She has worked in the insurance industry over 25 years with a focus on
●G lobal average commercial insurance prices increased by 19% in Q2 2020, according to the Global Insurance Market Index published by Marsh, a leading global insurance broker. 2021 is expected to bring more of the same.
property and casualty within the floor covering and construction industries. Ms. Eickhoff
●P roperty, Automobile, and Excess have seen the largest pricing increases. Insurance carriers are reducing capacity, applying stringent underwriting guidelines and pricing in an attempt to get back to underwriting profitability.
holds licenses in over 40 states. Risk Strategies Company is
● I nsured’s with losses or poor controls can expect to see higher than average increases and should be prepared for a difficult renewal process.
the endorsed provider for the World Floor Covering Association.
Due to the market’s hardening, insurance carriers see a higher number of submissions, and increased underwriting scrutiny has significantly slowed the process. We suggest you start the renewal process well in advance of your insurance effective date.
To prepare for your renewals, a thorough review of your insurance program, including coverage, limits, and exposures, should be conducted. Make sure you understand the coverage provided within your policy, including any enhancements provided by your policy. 30 Premier Flooring Retailer | Digital 3 2020
