Middle Market Underwriters Survey Results

Our middle-markets premium growth estimates are based on what we have experienced in recent insurance placements and what our brokers are hearing from underwriters. We also recently surveyed underwriters specializing in middle markets at 12 insurers to learn

whether our experience matches the underwriters’ view of the market. We’ve summarized our survey results here, which includes responses from insurers such as CNA, Chubb, The Hartford, Liberty Mutual, and Travelers.

Auto & Workers’ Comp

The survey results are consistent with the trends we are seeing. Auto continues to be an unprofitable line for insurers, and buyers should expect premium increases until this situation improves. Workers’ compensation is a bright spot for insurers, especially now that the fear of large COVID-19 losses has passed. Workers’ compensation premium increases that buyers experience will likely be due to exposure increases (i.e., payroll) as opposed to rate increases. Expect premium increases in auto insurance and workers’ comp.

General Liability

The underwriters’ responses around general liability expectations were somewhat surprising in that the majority of respondents expect premiums to either stay flat or decrease by no more than 5%. Almost 40% still expect an increase of more than 5%, but the expectations of the majority are worth noting. A challenge in forecasting middle markets premium is that this segment includes a variety of exposures. An underwriter will have a very different view of the general liability exposure of a software company versus a chemical manufacturer. Regardless of industry distinction, the underwriter sentiment is encouraging. The majority of underwriters expect premiums to remain flat or decrease by no more than 5%.

Coverage Expanding or Narrowing

Our survey result in this area is promising for buyers, as the majority responded that coverage will either stay the same or broaden. About 40% believe coverage will be more restrictive, but our experience is that underwriters only seek to reduce coverage on a risk-specific basis as opposed to narrowing coverage for all buyers. We also asked specifically about potential wildfire exclusions on umbrella/excess liability policies because we’ve seen a few insurers attempt to add this exclusion. The good news is that a resounding majority of underwriters do not plan to exclude this from umbrella/excess liability policies. The majority of underwriters said coverage will either stay the same or broaden.

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