After many years of relaxed underwriting and rate declines we are seeing limited signs of tightening in all segments of the professional liability insurance market – E&O, D&O, EPL and Technology/Cyber. Most of this change is tighter underwriting rather than rate increase, but both are occurring – a little. Most importantly, many underwriters are not tightening and increasing rates, leaving competitive options for many accounts.
While there have been isolated changes during the last few years, the current changes impact many more classes. Here are a few examples:
- A private company D&O market is raising rates approximately 10% on all renewals
- Market withdrawals in A&E (architects & engineers)
- Market withdrawals in insurance agents E&O
- A technology/cyber market is looking more closely at security measures utilized
- An E&O market is attempting to get 5-10% increases on all accounts
- One EPL market is restricting terms in certain jurisdictions
Underwriting changes are concentrated in a few segments and markets. This is an opportunity for smart underwriters and also for creative brokers. Competitive underwriters remain, and brokers can find the best client solution with some work.
What is the best way to navigate this changing market?
- Make sure submissions are complete and clear. We may request specific information not noted on an application in order to improve the presentation
- Look for market alternatives – there are still many markets
- Prepare clients for the changes
- Utilize an expert wholesale broker (ok, like us!)
eSpecialty Insurance is your specialty insurance expert. We have developed a streamlined marketplace to provide multiple proposals from a range of competitive insurers, along with expertise to help you evaluate your exposures and choose the best combination of comprehensive coverage and price. We look forward to working with you.
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