2021 is shaping up to be an another very hard market for the insurance industry, with expected rate increases across the board, especially in several key areas.
According to Willis Tower Watsons 2021 Insurance Marketplace realities Report, Among the many lines expected to see a jump in the amount of premium in Directors and Officers (D&O), Employment Practices Liability Insurance, Financial Institutions E&O/D&O and Cyber not far behind. With COVID forcing everyone home onto less secure places, breaches become more common over 2020, resulting in higher demand for 2021, with expected rate increase up to 30% or more for the Cyber Marketplace. Meanwhile, most categories of Directors and Officers insurance are expected to see at least 10% increases, with some suggesting as high as 70%. The excess market for professional and management liability products will continue to see rates increases at least through the first six months of 2021.
What this means is that it may be harder for most clients to find a decent rate for coverages that they desperately need, especially for cyber and D&O. Consult with your provider about rate increases and whether or not you’re gaining or losing coverage.