Welcome to iLeads Insurance Market Minute, where we bring you the latest, most relevant news regarding the insurance market. Last week you were reading Insurtech to Launch Parametric Pandemic Insurance Product. This week we’re bringing you: Survey: Insurers Not So Confident About the Pandemic Ending This Year
Commercial insurance markets continue to harden in Q2: USI*
Commercial insurance markets have continued to harden in the second quarter as many lines have seen double-digit rate increases, according to a market update released Tuesday by USI Insurance Services Inc.
Casualty markets have seen some of the steepest increases, as an umbrella and excess liability for middle-market accounts have risen 10% to 50%, while risk management accounts are up 25% to 100%, according to the report. Total capacity is down at least 25%, and there are requirements for higher underlying attachment points, USI said.
Primary general and product liability have risen more modestly at 5% to 10%, as auto markets have continued to see double-digit increases. “Rate increases are common for most insureds across most industries. Capacity constraints as a result of markets exiting this line have also put pressure on rates,” USI said.
Primary auto liability for fleets of fewer than 200 vehicles with good loss history is up 10% to 20%, while cover for fleets of fewer than 200 vehicles with poor loss history has risen 20% to 30% or more. Read more in-depth here.
CNBC DISRUPTOR 50: #18 – Root Insurance*
Tech start-ups have flooded into the insurance industry, promising consumers an easier and faster process. Among the newer firms is Root Insurance, which uses smartphone technology for car insurance. Rather than rely on historically biased demographic data to determine rates, Root’s mobile-first technology enables everyone with a smartphone to get a rate based primarily on their driving behavior.
Credit score, Zip code and even driving history have less to do with Root’s rating, enabling low-income, immigrant, and young drivers, who have traditionally been placed in high-risk pools through no fault of their own, to escape the punishing rates that can significantly impact their lives. Root claims it can save drivers up to 52% on their car insurance. Read more in-depth here.
Survey: Insurers are not so confident about the pandemic ending this year*
A new survey has revealed that most insurers are not too hopeful about the pandemic ending anytime soon, and that they have even switched priorities in preparation for a new normal.
The survey, conducted by Alan Walker LLC, asked 25 insurers – P&C, life, and health insurance companies – about their thoughts regarding the COVID-19 pandemic.
When asked about how confident they were that the pandemic would end by January 01, 2021, most of the participating insurers felt unsure. Fifty-four percent (54%) of the respondents said they were either “not at all confident,” or “not so confident.” Only 8% said that they were “very confident” or “extremely confident” that the outbreak would be resolved by next year.
The remaining 38% said they were only “somewhat confident” in COVID-19’s resolution within the year. Read more in-depth here.
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