Driven by a few years of losses, a wild 2020 and the continuation of uncertainty related to the COVID pandemic, global insurance prices continue to rise, according to the fourth quarter 2020 results of the Global Market Insurance Index.
U.S. workplace safety regulators have announced more than $4 million in penalties on more than 300 employers they say put workers at risk during the COVID-19 pandemic. But about two-thirds of these employers aren’t paying up.
The fourth quarter of 2020 was the 13th consecutive quarter with increased prices and the third consecutive quarter in which premiums increased for all lines. Large accounts saw the largest increase at 13.7%, followed by medium accounts at 11.7% and small accounts at 6.7%.
COVID-19 and the economic downturn have heightened underwriting scrutiny and risk aversion from insurers. In North America, more frequent high-severity claims, a severe storm season and the pandemic are putting strain on pricing, limits, deductibles, coverage terms and claims performance.
Insurers can help customers who have been significantly affected by the pandemic, and build a foundation for long-term success, by proactively connecting and providing protection solutions, says an industry expert.
If the nearly 4.3 million residential homes across the country with substantial flood risk were to be insured through the National Flood Insurance Program (NFIP), the NFIP rates would need to increase 4.5 times to cover the risk today.
Curated weekly by BuildingMetrix experts, InsuranceEDGE helps you work smarter. You don't want to miss an issue. Get InsuranceEDGE delivered to your inbox every Thursday. BuildingMetrix is a WSRB company.