A Summary of AMWINS Q1 2021 State of the Market Survey

Each quarter, AWWINS, a specialty insurance distributor, releases their State of the Market Survey which provides insights into the property, casualty, and professional insurance markets. We’d like to summarize some key findings from the survey that we feel are important for clients and others who might be interested.

The property markets

Overall, the property insurance market continues its upward rate climb, and this is predicted to continue this year, however not as drastic as last year. “We believe pricing in certain lines of business will peak during 2021 and then begin to decelerate,” the survey says. Much of this is attributed to winter storms in Texas and throughout the south at the beginning of 2021 and one of the most active hurricane seasons on record in 2020.

The survey says underwriters are looking at events over the past year and are adding communicable disease exclusions, mandating higher deductibles, and applying limitations or sub limits on civil riot and commotion.

The casualty markets

Like the property insurance market, hard market conditions are likely to continue in 2021, however at a lower level than 2020. Price increases continue to be driven by “both attritional losses and nuclear verdicts.” But while rates are still climbing, they are climbing at a much less steep rate.  

Rate relief will come about when there is more capacity, but unfortunately, the survey says challenging conditions will likely continue unless there is “meaningful tort reform, or until carriers gain more of a comfort level in certain segments and are able to avoid large verdicts and settlements.”

Professional lines

Professional lines include cyber insurance, public and private D&O, employment practices liability (EPLI) and healthcare. According to the survey, rate increases that began in 2019 have continued into 2021. Like with property and casualty markets, rate increases are expected to slow down, however. With more attractive pricing comes new capacity, but new entrants into the market are careful and are not coming in to undercut the current market.

Keeping all of this in mind, we’ll continue work with clients to find the best policy to meet your needs at the best rate, without sacrificing necessary coverage or insurer services. Often, that may be what you currently have in place.

If you are a commercial policyholder and have any questions about the AMWINS Q1 2021 State of the Market Survey, contact your Rose & Kiernan, Inc. client manager directly. For any general inquiries, you can always reach out to the team at Rose & Kiernan, Inc. here or by calling (800) 242-4433. 

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