AGENTS’ E&O UNDER PRESSURE
By Andrea Wells
The agency errors and omissions liability market has enjoyed stable market conditions for years. But that could be changing as agents and their insureds attempt to balance emerging risks in a changing insurance market.
The year 2020 [saw] changes in terms, pricing, capacity, carrier exits and even pandemic-related exclusions to the agency E&O market. “We have seen some changes to deductible structures or increased deductible amounts. We have seen some carriers who have increased premium in what we would call exit pricing. We have seen new business moratoriums and new exclusions,” according to Elizabeth Whitney, head of the U.S. Agents team at Swiss Re Corporate Solutions. “We’ve even had one carrier announce that they were leaving the market.” While the mantra of agency E&O risk management is “document, document, document,” for 2020 it could [have been] “COVID, COVID, COVID,” she said. “It has really created a lot of uncertainty and disruption in the agency E&O markets.” Mark R. Angelucci, resident senior vice president and E&O segment leader for Utica National Insurance Group, describes today’s agency E&O market as “nuanced.” It’s a tale of two markets, he said.
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JANUARY 2021
