As commercial insurance rates start to harden, more sophisticated owners of captives are starting to leverage them to avoid rate hikes by using analytics or looking to access the reinsurance markets directly. US Captive reports.
Following big losses in 2017 and 2018, the wider insurance markets have started to experience hardening rates. In North America, many key lines of businesses ranging from property-catastrophe, to directors & officers (D&O), to workers’ compensation have enjoyed steep rate increases in some instances.
According to Willis Towers Watson’s Q1 Commercial Lines Insurance Pricing Survey, prices for commercial auto, commercial property, excess/umbrella liability and D&O have all been increasing steadily and again there were increases in the first quarter of 2019.
The survey compared prices charged on policies underwritten during the first quarter of 2019 to those charged for the same coverage during the same quarter in 2018. The aggregate commercial price change reported by carriers was close to 2 percent for all four quarters of 2018, and came in just above 2 percent in the first quarter of 2019.
Willis Towers Watson, CIAB, US Captive, Insurance, Reinsurance, Property Cat, Rates, North America