We first saw the effects of the hard marked in the commercial industry. Across some lines — such as workers compensation, life sciences (new this issue), terrorism, product recall and alternative risk transfer — flat renewals are possible, though increases will persist for many buyers. The commercial insurance market appears to be hardening again. In the few cases where rate reductions were considered possible last spring, now, the best outcome buyers can hope for is flat renewals — with the exception of kidnap and ransom. But it’s important to point out that this market shift, this “hardening market” is absolutely essential for the health of commercial insurance businesses. In a soft market, insurance companies are very competitive in their pricing, and they are willing to provide insurance on a much wider array of risks than they would consider during a hard market. ARLINGTON, Va., Nov. 19, 2020 (GLOBE NEWSWIRE) -- North American commercial insurance prices are expected to increase in every line except one, according to Willis Towers Watson’s (NASDAQ: WLTW) 2021 Insurance Marketplace Realities report. Learn more at willistowerswatson.com. At the start of 2020, the biggest challenge for many risk professionals when it came to purchasing or renewing their insurance policies was navigating an increasingly hardening insurance market in which rates were increasing for almost all lines. The commercial liability marketplace remains hard because of various factors continuing to negatively affect loss trends and underwriting profitability. A copy of the full report can be accessed on the Willis Towers Watson website, along with a video message from Joe Peiser. A hard insurance market is characterized by a high demand for insurance coverage and a reduced supply. 8. Market cycles influence underwriting standards. The hard market of the mid 1980s, and the systemic changes in corporate risks — primarily asbestos and pollution liability — that caused it, gave rise to many structural changes in our industry: the rise of Bermuda as an insurance center, the dramatic growth of captives, fundamental changes to Lloyd’s of London, and, one could argue, the launching of alternative risk financing that has produced such products as catastrophe bonds, insurance … These triggers include the surge in frequency and severity of natural catastrophes across the world, the persistent increase in man-made property damage losses and rise in severity for liability losses of all types attributed to “social inflation.” Further and unsurprisingly, the pandemic continues to hurt our populations and economies, exacerbating the hard market. Another one … Life insurance premiums may decline 6% globally through the end of 2020 and by 8% in advanced economies, while a recovery of 3% growth is projected overall for 2021. In the few cases where rate reductions were considered possible last spring, now, the best outcome buyers can hope for is flat renewals — with the exception of kidnap and ransom. Directors’ and officers’ (D&O) liability will continue to see upward pressure well into 2021, but new start-up insurers targeting D&O could lead to some market stabilization. When the market is soft, insurance companies are looking for market share, so they lower their premiums and … The report, published today, points to several factors accentuating the current hard market, underscored by the significant withdrawal of capacity in response to systemic changes in risk exposures. Arlington, VA (May 7, 2020) – North American commercial insurance buyers will continue facing upward pricing pressure across most lines of business compounded by a newfound scrutiny of their coverage terms and conditions. In conjunction with Canada’s commercial insurance loss ratio hiking up, another significant and ongoing development has impacted the market. "Stock market and insolvencies will continue to hamper balance sheets. Promisingly, the leading global advisory, broking and solutions company suggests that the insurance industry will adapt to the continuing hard market by utilizing analytics and data-driven tools to change the way both buyers and sellers approach the negotiating table when it comes to risk transfer. The report, published today, points to several factors accentuating the current hard market, underscored by the significant withdrawal of capacity in response to systemic changes in risk exposures. Commerce Policy | Another Hard Market Harbinger: U.S. Commercial Lines Prices Up 4% in Q2. Ileana Feoli: +1 212 309 5504ileana.feoli@willistowerswatson.com, Willis Towers Watson Public Limited Company. This especially holds true for the umbrella/excess liability marketplace, which continues to experience extensive disruption. Hard Commercial Insurance Market on the Way How solid risk management will help your clients survive the coming storm. Different lines of business have different break … The 2012 Risk and Finance Manager Survey found that nearly two-thirds (63 percent) of survey participants were either seriously or moderately concerned over a hardening P&C insurance market.