Commercial Insurance Market Trends of 2020

​As 2020 is nearing the end, commercial insurance markets are tightening due to the COVID-19 Pandemic and other unanticipated factors. A detailed assessment of risks is being developed within every coverage. Recent events impact commercial insurance, particularly directors and officers, employment practices, casualty, cyber liability, and those entrepreneurs working from home. Given the circumstances, significant claims are anticipated by the insurers. 

Taking this into account, here are a few highlights of the current Commercial Insurance Market Trends of 2020:

Directors and Officers
The D&O market conditions are continuously being affected by the impact of the COVID-19 Pandemic. Misleading statements, false claims about vaccines, and treatments are being cut down on litigation by companies conducting IPO and offering relief from state suits. Insureds must expect to see more COVID-related cases in the coming months. As such, cash management and crisis management details are now required for all insureds.

Employment
Massive layoffs of employees, remote working, work from home setups, employee benefits, and other issues are being created because of COVID-19. There has been an increase in the workers' compensation claims, especially disease-related. Business closings and large-scale layoffs are increasing worker's compensation claims. As a result, workers' compensation could drive up, usually stable between -2% and +2%. 

Casualty 
Reduced capacity, broad claims, and umbrella policies are affecting casualty insurance. Underwritings of Commercial Auto have been delivering net losses since 2010, and with the recent events, these liability claims emerged. Excess liability rates rising at the fastest rates became a question to companies because of what changed after the premiums had been flat for years. 

Stocks
Looting, rioting, and a natural disaster hitting extensive storage facilities cause a significant loss in stocks. Along with the Cargo Industry, rates are being increased and deductibles to correct the failures because of these factors. 

Cyber and Working from Home
With the advancement of e-commerce this year and many employees working from home, cyber breaches become a primary concern—the frequency of ransomware attacks during 2020 from 25% to a 33% growth. Companies must be familiar with the protocols' changes and be prepared to respond to these cyber liabilities. More underwriting analysis is expected through the upcoming months. 

Protecting yourself from these breaches is crucial. It can be obtained by knowing what information is needed to avoid ransomware attacks.

At Kapasu Insurance Services, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (760) 995-3853 or Click Here to request a free quote.