The firming Casualty market has been driven by catastrophic liability losses fueled by an aggressive plaintiffs’ bar, litigation funding, anti-corporate jury sentiment and nuclear verdicts.
As massive loss trends from prior years continue to impact the line, this firming trend continued well into Q1 and Q2 2020, with expectations that things will remain unchanged throughout the year and likely into 2021.
While rate increases are being experienced across the board, industries hit particularly hard include habitational, energy, construction, sports and entertainment, restaurants and bars and the religious sector, among others.
As the jarring impacts of COVID-19 push forward, what’s in store for your clients for the rest of 2020 and beyond?
The RPS U.S. Casualty Market Outlook reveals several additional key factors impacting market conditions.
- The habitational industry has been experiencing a significant rise in claims activity in the $1 million-$5 million bandwidth, bleeding into the excess market.
- Residential contractors, utility contractors, street-road contractors and those with auto exposures are experiencing firming rate trends with the umbrella/excess market as a result of poor loss history and social inflation.
- The energy sector is experiencing a minimum 25% hike year-on-year in the excess market, with added creativity required to build a tower.
- The sports/entertainment, and bar/restaurant, industries, already experiencing significant rate increases and diminished capacity, have been hard hit by the pandemic and face economic uncertainty.
- The religious sector experienced market firming in late 2019 and into 2020. In the wake of COVID-19, carriers are including new communicable disease policy exclusions.
Download the RPS U.S. Casualty Market Outlook to read the full report.
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