Will Commercial Insurance Costs Come Down Now?
The evidence is accumulating!
In May we wrote about an expected market top in commercial insurance pricing (May article). Now there is unmistakable evidence that so much new capital (supply) is coming into the insurance market that the top seems to be imminent, if not right on top of us. Price stability is also reflected in the recent renewals we’ve handled for our clients.
The insurance market goes from soft patches where coverage is affordable and plentiful, to hard markets where availability restricts and prices rise, sometimes brutally.
High Prices Attract Attention!
In May we said the high insurance pricing would bring in new players anxious to get a piece of the action. This is happening in spades. Take a look at these nuggets from either the insurer launch notices or articles in the trade press in just the last month:
“New London MGA was launched with a view to transforming the D&O [Directors & Officers] market… “
“SiriusPoint and Chubb’s Usher-Jones launch new specialty MGA Banyan Risk…”
“Bermuda-based reinsurance company Canopius Re … will significantly extend [their] scope…”
“..a greater focus … and the continued flow of capital into the industry…wil open the door for companies and investors…”
“Horseshoe Re received regulatory approval … from the Bermuda Monetary Authority to establish Nectaris Re…”
See the May article to understand how to manage this development to your advantage.
Have a risk manager on your side
The largest companies have entire risk management departments reporting to the CFO. You need risk management too.
(c ) Licata Risk & Insurance Advisors, Inc. 2021
Frank Licata
[email protected]; 617.718.5901
Aug 13, 2021
