YE 2017 Market Report

Executive Summary

The general property/casualty market continued to operate with an abundance of capacity and competitive terms through the latter half of 2017 - with the exception of focused pressure on catastrophic property lines. The dramatic frequency and severity of hurricanes, storms and wildfires during this period caused rate tightening on accounts with significant loss experience and/or wind, flood and earthquake exposures. Nonetheless, the industry's strong capital levels limited any threat to solvency. These natural disasters may create an earnings event for some carriers but are unlikely to result in a capital event impacting the general market.

Premium growth in the market was roughly in line with U.S. economic growth and somewhat contained by the high degree of market saturation and fierce competition amongst carriers for market share. In addition to catastrophic property, small pockets of risk may see some rate pressure (such as cyber insurance or automobile liability) but at a macro level, the trend supports a continued buyers' market. Factors identified in our mid-year 2017 report, such as Healthcare reform and regulatory governance, continue to merit monitoring but have not created measurable change within the property and casualty market. There are additional areas of potential impact that necessitate watching as we move through 2018. Those areas are outlined below.

Digital technologies including social media, telematics and big data are transformative. There will be an impact on marketing, distribution, customer service and pricing strategies.

Cyber Risks
Insurers face pressure to keep products relevant as digital attacks increase and expose previously unanticipated areas of vulnerability. At the same time, insurers will face pressure to create robust security systems within their own firms.

Continued M&A

We saw M&A activity triple in early 2017 compared to a similar period in 2016. The second half of 2017 through the start of 2018 have seen a continuation of this trend. This dynamic could create a consolidation of capacity and limit choice for buyers.

With a generation of insurance professionals retiring in 2017, Insurers will need to attract Millennials to fill the gaps. There will be an additional demand to expand staff in the areas of data science, cyber risk, digital marketing and more to position these firms for the future.

Customer Expectations
Services in other digitally enabled industries cause demand for more personalized experiences from Insurers including 24/7 access. Combined with price sensitivity, there is greater pressure on comparison-shopping and client retention.

An increase in competition and pricing transparency will hold down premium levels. Insurers need to reconsider pricing models as the 'pay-as-you-go' approach gathers appeal and analytics provide deeper customer insights.

We hope that you will find this review to be informative and useful. We present it in the following sections:

  • Market Overview: provides a high level summary by market segments.
  • Industry Overview: offers a macro look at the Property & Casualty marketplace through analysis provided by ALIRT Insurance Research, which specializes in the analysis of insurance company financial performance trends.
  • Detailed Market Overview: includes deeper commentary and observations by specific market segments.

Market Overview


Overall, the aviation insurance industry was very stable in 2017 in both capacity and breadth of coverages offered. Carriers remained financially strong and most continued to be competitive with a desire to increase premium levels. No major losses occurred in 2017. Carriers should continue to look for price increases across most lines of coverage through 2018.


While the casualty market continued to be soft, it is in a state of transition for accounts with more challenging exposures. Auto Liability rates continued to rise, while General Liability rates continued to be relatively soft for accounts with clean loss histories. The Workers’ Compensation market remained competitive. There continued to be abundant excess casualty capacity, at just over $2.3 billion on a global basis. With sagging growth and falling profits, the industry is likely to see greater consolidation, including within the specialty insurance market.


There are currently over 70 carriers offering stand-alone cyber insurance products. Thus, competition for market share is strong, especially for businesses with less than $250M in annual revenue. The supply continues to far exceed the demand, and we expect the global cyber market will continue to grow in 2018. Carriers will continue to refine their approach to underwriting cyber risk in an effort to gain better control over their aggregation risk as well as to provide more accurate pricing.


While the music festivals market has seen much growth over the past five years, there have been some significant market losses within the contingency area. Overall, 2017 market rates demonstrated significant increases toward the end of the year, as well as a hardening of applied policy terms and conditions. Further increases are expected in 2018. Festival adverse weather cover will be subject to greater rate increases. And while capacity remained stable, insurer will become more selective as they seek to reduce their exposure on challenged risks.


Market conditions have calmed following AIG’s exit from the North American site-pollution business. Insurer acquisition activity continued in 2017 but it no longer defined the market. Rate increases tended to be driven by specific risk classes or as a direct result of loss experience, and most incumbent carriers sought to keep rates close to flat or very near flat. An increasingly strong economy provides optimism, and the current market capacity suggests that a meaningful hardening of the market is unlikely.


The medical professional liability (MPL) sector began to change for the first time in over a decade, as aggregate industry results became unprofitable. The increase in the severity of MPL claims continued; a trend likely to continue. Managed Care Organization (MCO) E&O continued to grow as an area of exposure, as health systems formulated Accountable Care Organizations. The Medical Stop Loss and Reinsurance market continued to see upward pressures on rates, a trend noted in the healthcare market overall as it seems to be taking a slight turn toward tightening.

Management Risk

The Directors & Officers and Employment Practices Liability marketplaces remained competitive as plentiful capacity kept primary premiums flat to slightly down. The Commercial Crime market remained stable with no increases on renewals with incumbent carriers. The Fiduciary Liability marketplace also remained competitive throughout last year.


Overall, the marine cargo marketplace remained soft with broad coverage terms. Much like the property market, which marine tends to follow, the U.S. hurricanes created a temporary hard market. We expect rate reductions to cease on expiring renewals for loss-free accounts for the near future. Reinsurance rates also firmed, with some direct insurers experiencing increases in the 20-25% range. The Marine Hull and Liability insurance markets saw some contraction. Broadly, the marine market held steady with a wealth of capital and plentiful limit capacity, except for certain classes.

Professional Services Firms

The Professional Services Firms market for Accountants and Lawyers saw a high degree of competition, and broad coverage continued to be available. Accountants' market conditions remained soft, while rates for lawyers' professional liability remained at historically low levels due to abundant capacity. Soft market conditions and healthy capacity should remain throughout the first half of 2018.


While catastrophic events in the last five months of the year pushed 2017 to be the costliest property loss year ever, reinsurance treaty renewals on January 1 turned out to be less punitive than expected. Pricing adjustments impacted wind and flood exposed properties, with underwriters looking to adjust deductible levels and deductible caps. As we move into 2018, carriers may be looking to gain back rate position lost over the last half decade in the face of an abundance of capacity in the marketplace.


The Surety market continued its profitable trend toward a pure loss ratio of close to 15 percent. The technical publication, Engineering News Record, ranks the top 400 general contractors, publicly and privately held, based on construction contracting-specific revenue. Known as the ENR 400, these contractors had a combined volume that exceeded the previous high water mark for the industry set in 2008. Both the Contract and Commercial surety industries are predicted to grow somewhat in 2018. 

Transportation and Logistics

In the second half of 2017, the transportation insurance marketplace remained competitive in this relatively soft marketplace. Competition kept rates and premiums for Logistics Liability policies stable, and rates are expected to remain consistent in 2018. Lower insurance premiums for Logistics Liability policies, the availability of broad coverage options, and increased capacity are expected to continue through the beginning of 2018.

Taking the Industry’s Temperature

The “Big Picture”: 2017 P&C Insurance Industry Through September 2017


Underwriting and Operating Results and Premiums

After fairly flat results in 2014 and 2015, the composite AY combined ratio deteriorated dramatically in 9M17- impacted by large catastrophe losses.  The reported combined ratio was also affected by catastrophe losses, but less so because of notably higher reserve releases.

% Change in Surplus

Surplus grew 3.3% in the first nine months of 2017 as somewhat lower operating earnings and solid net capital gains outpaced continued shareholder dividends paid to parent companies.

Gross and Net Premium Leverage

Net premium leverage was basically flat through 9M17, as surplus growth continues to keep pace with premium growth, while gross leverage is showing very modest growth; both measures continue to reflect ample financial capacity to write business.


Net premium growth was steady in 2016 but jumped in 9M17, as did  direct premium growth after slowing notably in 2016 (reflecting in part a soft-ish rate environment).  Net premiums in 2014 and 2015 were adjusted for a large reinsurance transaction involving the two lead subsidiaries in the GEICO group


* Represented by the ALIRT P&C Composite, which consists of the 50 largest U.S. property/casualty insurers (excludes professional reinsurers).



Market Overview

Driven by natural catastrophes (hurricanes and forest fires) and the resulting impact of those losses across the reinsurance market, aviation insurance carriers are attempting to increase prices across their books of business. While some carriers have stated that no reductions will be granted and increases will occur on most or all lines, others are taking a somewhat softer approach and are looking at each client individually. It is not known how long this trend will last but, for the first quarter of 2018, aviation insurance premiums are likely to be higher than this time last year.

Premium Overview

Coverages Q4 2017 Q2 2017
General Aviation Flat (dependent upon losses) Flat (dependent upon losses)
Products Liability Flat (dependent upon losses) Flat (dependent upon losses)
M/MRO Flat (dependent upon losses) Flat (dependent upon losses)
Airlines Flat (dependent upon losses) Flat (dependent upon losses)
Helicopter Flat (dependent upon losses) Flat (dependent upon losses)

While rates and premiums remained stable for most of 2017, uncertainty about the potential impact of natural disasters on the reinsurance market resulted in a more conservative approach to underwriting across most lines of aviation coverage. Another influence on the market was the potential impact of the FCA/EU investigation into market activities. These two factors drove price increases in the fourth quarter of 2017 and will likely continue well into 2018, with increases possible in General Aviation, Products Liability and Helicopter coverages.

Capacity Overview

Total available capacity in the aviation insurance market remains high at more than $3 billion with an effective capacity of at least $2.5 billion. This remains the same as during the first quarter of 2017.

No change in capacity is expected in 2018. There may be more consolidations of carriers in the market; however, past consolidations have had a very limited impact on total market capacity.

Coverage Overview

Overall, the aviation insurance industry was very stable in 2017 in terms of not only available capacity but also breadth of coverages offered by the carriers trading in this market. Carriers remain financially strong and most continue to be competitive within the context of previously mentioned desires to increase premium levels.

No major aviation losses occurred in 2017 and although airline and other losses from prior years remain open, the aviation insurance market did not see a significant deterioration in loss ratio last year.


Based on current market conditions, we anticipate that carriers will continue to look for price increases across most, if not all lines of aviation coverage through the rest of 2018.

The ongoing EU investigation into aviation market activities in London should be watched. Depending on the outcome of this investigation, there could be an impact on capacity and pricing in the London and European aviation insurance markets.

Integro continues to stress to clients the importance of developing and maintaining strong relationships with carriers and to approach renewals with complete and detailed information so that the underwriters have a full understanding of the risk and can provide the best renewal terms possible.


Market Overview

Insurers continue to protect their best renewals with rate reductions, improved terms, multi-year rate commitments and more relaxed collateral requirements in addition to offering early renewal terms to avoid being marketed. 

The industry continues to experience more disciplined underwriting to support poor underwriting performance. Accounts with distressed financials receive increased underwriting scrutiny.

While the casualty market continues to be soft, the market is in a state of transition for accounts with more challenging exposures.

Premium Overview

Coverages Q4 2017 Q2 2017
Auto Liability Flat to 10% rate increases* Single to high single digit rate increases
General Liability Slight decreases to high single digit increases Flat to slight rate decreases
Workers’ Compensation High single digit rate decreases to single digit rate increases Flat to slight rate decreases
International Liability Slight decreases to slight increases Flat on average
Umbrella/Excess Liability Slight to flat rate increases Slight to flat rate increases

*Higher increases are possible for accounts with adverse loss experience/heavy fleets

Primary Casualty

  • Auto Liability rates continue to be on the rise. We are seeing flat to 10 percent rate increases across the board for accounts with no losses, and higher increases for accounts with adverse loss experience and heavy fleets. Auto rates are influenced by factors that include the following examples, which contribute to the frequency and severity of losses:
    • Growing economy – more cars on the road
    • Technology – safer cars but more expensive repairs
    • Distracted driving due to texting and internet surfing
    • Legalized marijuana – may lead to driving while under the influence
    • Speeding
    • Weather
  • General Liability rates continue to be relatively soft for accounts with clean loss histories. High to mid-single digit rate decreases are still available. Conversely, accounts with adverse loss experience are encountering double digit rate increases.
  • The Workers’ Compensation (WC) market continues to be competitive. Accounts with significant exposure reductions did receive greater premium reductions than other coverage lines. Accounts with adverse loss experienced single digit increases.
  • The WC market continues to be limited for companies with high employee concentration exposures.
  • The International market continues to be competitive, and guaranteed cost coverage is still readily available. New entrants include:
    • Generali and Swiss Re: leveraging their existing international platforms
    • Hartford: developing solutions for Middle Market businesses

Umbrella/Excess Casualty

  • The umbrella market is seeking flat to low double digit increases, with higher increases for accounts with large/heavy auto fleets and/or adverse loss experience. Additionally, umbrella markets are selectively reducing capacity and seeking higher attachment points on higher hazard risks. Some umbrella markets will consider deploying additional capacity in an excess layer.
  • There continues to be abundant excess casualty capacity, however, premium reductions are limited in the higher excess layers because pricing is already at or near minimum premiums.

Capacity Overview

Global Excess Casualty capacity is just over $2.3B, which includes retail, wholesale, London, Bermuda, Dublin and Zurich.

Coverage Overview

There are several emerging issues worthy noting as trends.

North American Opioid Epidemic

According to the CDC, the amount of prescription opioids sold in the U.S. has nearly quadrupled since 1999. Over-sourcing/prescribing of opioids is a contributing factor that may lead to:

  • Loss of productivity
  • Decline in labor force participation and its impact on the economy
  • Increased healthcare and rehabilitation costs
  • Increased criminal justice and law enforcement costs
  • Increased medical malpractice claims
  • Inflation of Workers Compensation claims
  • Litigation

States and municipalities in the U.S. are suing large pharmaceutical companies, suppliers, distributors, pharmacies, grocery stores that include pharmacies, and physicians for their alleged contribution to the opioid epidemic. These lawsuits are primarily seeking to recover the social and economic cost associated with opioid abuse.

As a result, the insurance market is developing an exclusion to address this epidemic. The exclusion will impact manufacturers, distributors, and pharmacies (including retail businesses with pharmacies). The exclusion will focus on marketing, misleading the public about the addictive nature of opioids, over-sourcing, illegal prescriptions, etc. The coverage trigger may change from occurrence to claims-made or occurrence-reported. AIG, Swiss Re and the Bermuda and London markets are already adding this exclusion.

Legalization of Marijuana

Despite several states having legalized marijuana for recreational and medical uses, marijuana is still classified as a Class A drug, which makes it illegal under federal law. Key concerns include: conflict between state and federal law; increased frequency of auto accidents in states allowing recreational marijuana use; consumption of marijuana in the workplace; employee discrimination claims; and the financial impact on the insurance industry.


The recent storm/quake/wildfire activity has yet to have an impact on casualty rates. The general consensus is that we will remain in this phase for the foreseeable future due to the abundance of capital in the marketplace. The second and third quarters of 2018 will be telling as reinsurance treaty renewals are completed and more firm data on the impact of these catastrophic losses is available.

With sagging growth and falling profits, the industry is likely to see greater consolidation, including within the specialty insurance market. Insurers will continue to explore InsurTech opportunities through partnerships, acquisitions and venture capital investments. Barring further catastrophic events, we do not anticipate any major shift in casualty market conditions over the next quarter.


Market Overview

Cyber risk continues to frustrate and challenge organizations of all sizes, within all industry verticals.  Rapid advances in, and increasing reliance upon, technology combined with a surge in cyber-crime have created a perfect storm. Over the past 12 months we have seen cyber breaches and attacks grow in number, size, scale and level of sophistication. The types of organizations impacted continue to shock and amaze. The Equifax breach disclosed in September 2017, which impacted 143 million Americans, tells us no organization is safe. The WannaCry and NotPetya attacks in May and June of 2017 demonstrate the potentially catastrophic nature of cyber-attacks. These three incidents highlight the indiscriminate nature of cyber risk. Transcending business size, industry, and geography, the risk literally has no boundaries.

The realization that risk cannot be entirely transferred or eliminated is forcing organizations to entirely change their approach to network security and risk management. While insurers are making strides to assist organizations in managing this risk, they continue to struggle with how to best underwrite and price it. Fears of catastrophic accumulation of cyber exposures connected to “silent” cyber coverage in traditional products abound.  

Premium & Capacity Overview

Size of the Market:
At the end of 2017, the global cyber market was approximately $3B (USD), with 90 percent of that attributable to U.S. companies. By the end of 2018, global premium is expected to rise to $5B and by 2020 it will likely exceed $10B, which is the approximate size of the D&O market. This translates into annual growth rates of between 20 and 60 percent.

Penetration Rates:
While stand-alone cyber insurance is no longer new, the cyber insurance market is still in a state of immaturity and overall penetration rates remain low. Historically, medium to large size organizations in high-risk classes of business such as healthcare, retail, and finance, have been the primary buyers of stand-alone cyber insurance. The penetration rates within the small to medium size organization segment (those with less than $250M in annual revenue) that sit outside those industry classes are still relatively low, at less than 25 percent. In 2017, we saw the market shift its focus and expand coverage in the areas of physical loss and business interruption. We expect this shift to increase penetration rates somewhat in all industry verticals and size segments. 

Today, there are more than 70 carriers offering stand-alone cyber insurance products. Competition for market share is strong, especially for businesses with less than $250M in annual revenue. The supply continues to far exceed the demand in this area. As a result, pricing remains relatively stable, even for high-risk classes of business. We are seeing flat to single-digit increases (up to 5 percent) in mid-sized, non-high-risk classes of business, and coverage remains negotiable. We expect this to continue into 2018.

The supply is keeping pace with the demand in terms of capacity. As the demand increases, new carriers enter with additional capacity. New capacity comes from U.S.-based carriers as well as London, Bermuda and Asian markets. At present, the capacity is as much as $600M (USD). The number of carriers willing to take a primary position on a complex risk that requires such capacity is limited. Further, the underwriting process is far more detailed for the larger, complex risks than it is for those in the small to medium size segment.

Coverage Overview

Shift in Focus:
In the early years of cyber insurance, the coverage focus was largely on privacy protection-based coverages and breach response. While such coverages are still hugely important, in 2017 we saw a fairly sharp shift in focus on to things like: (1) operational related coverages, such as Business Interruption, Dependent Business Interruption, and System Failure; (2) physical risk coverages, such as coverage for property damage and bodily injury arising from cyber perils; and (3) cyber-crime coverages, including social engineering fraud and wire transfer fraud.

Silent Cyber Coverage & Risk Aggregation:
Cyber-related incidents have the potential to trigger coverage under various different traditional insurance products such as: General Liability, Property, Kidnap/Ransom, Professional Liability, etc. This is often referred to as “silent” cyber coverage. Policies that do not affirmatively address cyber risk could be interpreted to fully apply, even though there is no intent for the policy to cover such an exposure.

Overlapping or silent coverage is particularly concerning to carriers, especially those trying to manage their risk aggregation. As a result, we are starting to see the markets tightening up policy wording on traditional products so as to affirmatively address cyber risk in an effort to contain the exposures and clarify the intent. Many times this is done through endorsements, separate insuring agreements, and sub-limits or cyber-related definitions. In addition, some markets have started to offer difference-in-conditions and difference-in-limits policies that operate as umbrella-type coverage over traditional insurance products.

Product Development & Consistency:
The rapidly evolving threat landscape results in frequent coverage changes. Carriers are updating their core cyber forms, on average, every 18-24 months, in an effort to stay current and competitive. Although the core coverages being offered are becoming more consistent, terminology used within the core forms is still inconsistent. As a result, meaningful policy comparisons are incredibly challenging, if not impossible.


Continued Market Growth:
The global cyber market will continue to grow in 2018. Domestically, we expect a majority of the growth to be driven by increased penetration rates in the small to medium size business segment. Internationally, we expect the implementation of the General Data Protection Regulation in May 2018 to spark an interest in cyber insurance and accelerate growth in the European market.

Continued Growth of Capacity:
We generally expect capacity to keep pace with demand. As the market grows and matures, new capacity will likely become available. So long as the supply exceeds or keeps pace with the demand, premiums will likely remain relatively stable in 2018. Notwithstanding, the Equifax breach could have an impact on pricing and the availability of capacity for large organizations in high-risk industries.

Increased Focus on Technical Underwriting:
Carriers will continue to refine their approach to underwriting cyber risk in an effort to gain better control over their aggregation risk as well as to provide more accurate pricing. A more technical and analytical approach to underwriting cyber risk will allow carriers to reward companies that have strong network security controls in place with more favorable pricing. In addition, in the wake of the Equifax breach, we are likely to see more detailed underwriting of large businesses in high-risk industries that hold a significant amount of personal information.

In December 2017, a cyber market leader launched a new underwriting/benchmarking tool that quantifies and scores cyber risk. This tool will be used to evaluate and score cyber risk on all lines of business and insurance products, including cyber insurance.

Expanding and Contracting Coverage:
Coverage offerings on stand-alone cyber products will continue to expand to keep pace with the ever-changing threat environment. The continuing escalation of cyber-crime will likely cause an increased focus on the adequacy of crime-related coverages as well as risk management tools. Further, increased reliance on Internet connected devices will force the market to solidify an approach to coverage for property damage and bodily injury arising from cyber perils.

While coverage under stand-alone cyber policies will likely expand in scope, coverage under traditional insurance products will likely contract, to some degree, as carriers look to address silent cyber coverage. Traditional products that were not intended to respond to cyber perils will be amended or revised to contain or restrict cyber-related coverage.

The Impact of the Equifax Breach and the GDPR:
Equifax Breach

The Equifax breach, disclosed in September 2017, impacted 143+ million people – approximately 50 percent of the adult population in the U.S. The company is facing over 240 class action lawsuits (including a rare “50 state” class action suit, naming plaintiffs from every state), and more than 60 state, federal and foreign governmental investigations.

In the wake of this massive breach, we expect carriers to pay closer attention to large organizations holding significant amounts of highly personal information. We could see carriers engaging in more detailed underwriting, tightening policy wording/terms, reducing or restricting capacity and/or increasing premiums. We also expect to see regulators being more active within the business segment and industry vertical – having increased expectations regarding cyber risk management and initiating more inquiries/investigations. Finally, we anticipate this breach will have an impact on the views and actions of state and federal legislators as well law enforcement agencies.

GDPR – May 2018

The European General Data Protection Regulation (the “GDPR”) is set to go live on May 25, 2018. Although the GDPR is a European Union regulation, it is expected to have a significant and wide-reaching impact that extends far beyond the physical boundaries of the EU. Any company that offers goods or services to, or communicates with, EU citizens (“data subjects”) may be impacted by GDRP to some degree, regardless of company size or physical location. We expect this will accelerate the growth of the cyber market in the E.U. and beyond. In addition, the breadth of the GDPR will likely impact regulators and legislators within and outside the U.S. This could be used as a blueprint for future regulations.

Entertainment Contingency

Market Overview

The Contingency insurance market in London writes a broad range of coverages. This overview focuses on cancellation/interruption coverage for music concerts and festivals; theatrical and film productions; conferences; exhibitions; and sporting events. Contingency policies may be individually tailored to cover the non-appearance of individual artists due to illness and accident, and provide protection against the occurrence of adverse weather conditions. They may be extended to include claims arising from the cancellation of events or productions due to acts of terrorism, outbreak of communicable diseases, or a declaration of national mourning.

Music Industry Market Spotlight
An explosion of free media and low cost music purchasing ability over the past five years has created a decrease in artist revenues from album sales and a steep increase in band touring activity. It is not uncommon for tours by major artists to gross in excess of $100 million. Global tours now reach beyond North America and Europe to Asia, Australia and South America.

The music festival market has seen even greater growth over this period, with more than 600 music festivals in the UK annually and similar expansion throughout North America. Major festivals now attract attendances of 60,000 to 140,000 patrons per day, which generates significant revenues for organizers.

There have been some significant market losses within the contingency area in recent years. In 2016, profitability for Insurers was weak, which was a continuation of the results seen in 2014 and 2015. Results in 2017 improved to a degree, but there is still considerable focus on the profitability of the contingency account. Weather-related losses in North America along with widely-reported artist illnesses and accident claims impacted the bottom line for insurers.

Pricing & Capacity Overview

Recent years have witnessed deteriorating loss ratios for Insurers due to reduced rating and excess capacity in the market. New market entrants and their desire to establish accounts drove pricing downward, which led to broader coverage offerings and an easement of normal policy terms and conditions.

Overall, 2017 market rates demonstrated some significant increases towards the end of the year, as well as a marked hardening of applied policy terms and conditions. Further increases are expected in 2018, which will focus on rating increases for older artists and more stringent terms being applied to any known medical conditions.


There are clear signs that the market will seek to increase rates during 2018. In addition, there will be more onerous policy terms and conditions applied by Insurers. Festival adverse weather cover in the U.S. and Europe will be subject to greater rate increases. Reduced Insurer appetite for such risk and a deteriorating claims experience will present challenges to the broker market. Capacity has remained stable; however, Insurer appetite will become more selective as they seek to reduce their exposure on risks with a challenging age and loss record profile.


Market Overview

The most notable Environmental market impact continues to be the wake created by AIG’s exit from site-pollution business in early 2016. Since multi-year policy terms are common, the effects of AIG’s exit should substantially drop off at the end of 2018, when most of AIG’s three year policy terms will have been replaced.

The most notable recent acquisition activity is Liberty Mutual’s acquisition of Ironshore; however, this has not profoundly impacted the market.

Other recent market changes include Zurich’s reformed site-pollution business strategy and the entrance of Sirius in December 2017 to the environmental market. As Zurich reallocates underwriting resources to its new wholesale market efforts, less underwriting resources are going to its existing retail business.

Premium Overview

Coverages Q4 2017 Q2 2017
Pollution Legal Liability/Site Liability -20% to +5% -20% to +10%
Contractors Pollution Liability -15% to flat -15% to flat

Market conditions have calmed from mid-2016 to 2017 levels, when AIG exited the North American site-pollution business. Insurer acquisition activity continued in 2017 but it no longer defines the market. The number of insurers offering pollution liability and contractors liability coverage remains abundant; however, there are fewer insurers than in prior years. Rate increases have tended to be driven by specific risk classes or as a direct result of loss experience, though insurers impacted by recent property losses may soon be compelled to seek increases on their other business lines. When renewals are marketed, there is still sufficient competition to recognize decreased premiums/rates for many risks. Most incumbent carriers sought to keep rates flat or very near flat; however, some have pushed for 5 percent rate increases.

Capacity & Coverage Overview

Several major insurers have communicated profitability challenges that appear to be a natural outcome following several years of decreasing rates and increasing claims activity. Presumably to aid in risk selection, some insurers have shown a preference to smaller, middle-market placements and have declined their larger portfolio risks. In contrast, Allianz has communicated an increase in capacity to $50M, which suggests that their intention is to compete more strongly on larger national and global programs. Only a small group of insurers continue to provide limits greater than $25M and 10-year policy terms.

Specific classes of business that have been increasingly difficult to insure include: healthcare, hospitality, redevelopments, and any risk linked to PFOA/PFOS chemicals. These classes join pipelines and mining, which have historically been subject to ultra-high underwriting scrutiny.

Increased competition on renewals has continued to yield decreased premiums/rates in certain circumstances by up to 20 percent (depending on the marketing strategy and risk-specific factors). With respect to rate, incumbent carriers appear to be at a disadvantage, often seeking to keep the rate flat or even institute rate increases.


An increasingly strong economy provides optimism, and the current market capacity suggests that a meaningful hardening of the market is unlikely. There appears to be an opportunity for one or more insurers to separate themselves through quality marketing campaigns and an improved buyers’ experience that emphasizes creativity, consistency, and high-quality service. Insureds would be wise to read their policy wordings carefully when changing forms, ask questions, and look beyond premiums alone when selecting an insurer; policy language and coverage nuances will be magnified as claims activity continues to increase.



  • Medical Professional Liability
  • Managed Care Organization E&O
  • Medical Stop Loss

Premium Overview

Coverages Q4 2017 Q2 2017
Medical Professional Liability Flat to tightening Flat to slight decrease
Managed Care E&O Liability Flat Flat
Medical Stop Loss Liability Flat to tightening Flat to slight decrease

Market Overview

Medical Professional Liability

As we look back over 2017, we can say that it produced dramatic changes, as efforts were underway on Capitol Hill to “repeal and replace” the Accountable Care Act (ACA). While the attempt was unsuccessful, as the year ended there were a number of other highlights that will have an impact on healthcare in America, including:

  • Health system mergers, such as the one between Ascension Health and Providence St. Joseph Health; and Advocate Health and Aurora Health, creating “mega-healthcare systems”
  • Hospitals’ continuing employment of physicians
  • Ongoing influx of private-equity backed acquisitions of physician and surgeon practices
  • Changing landscape of health plans, including CVS’ intent to acquire Aetna; United Healthcare and Optum; and Humana’s acquisition of Kindred
  • Anticipating disruptive technology, such as Amazon; CVS’ purchase of Aetna; Walgreens’ collaboration with New York Presbyterian; and Walmart’s ambitious goal to become the number one health care insurance provider in America

With these changes as well as others influencing point-of-care service in the U.S., underwriters and brokers in the healthcare sector are “re-thinking” the most cost effective and efficient models to avoid liability and protect assets.

The medical professional liability (MPL) sector began to change for the first time in over a decade, as aggregate industry results became unprofitable. Many insurance and reinsurance carriers noted that combined ratios increased to over 100 percent in 2016 and 2017. Impacting these results were multiple large verdicts, with over 30 in 2017 exceeding $10 million, many of which were in traditionally more conservative venues, including:

  • A $61.6 million judgment in Rhode Island was awarded to a patient who sued two doctors and a hospital for taking him off blood-thinning drugs, a decision that led to severe blood clots in his legs and lungs and required the amputation of his right leg. The September verdict was the largest medical malpractice or personal injury award in the state’s history.
  • In March, an Arkansas jury awarded $46.5 million to the family of an infant who suffered brain damage, finding that doctors at a hospital were negligent by failing to undertake procedures to prevent the infant’s skin condition from worsening.
  • Following a bench trial, a Pennsylvania federal judge ruled in April that the federal government must pay $41.6 million to a couple after finding that a doctor at a federally funded health clinic negligently used forceps to deliver the couple’s baby, which caused permanent brain damage.

The increase in the severity of MPL claims continued throughout 2017. We anticipate similar increases in 2018 as medical inflation outpaces the consumer price index, and the cost of hiring medical experts (by plaintiff attorneys’) continues to rise.

During 2017, we generally observed flat renewals, and in some cases premium reductions, due to competition. For accounts renewing in October and later, underwriters in the U.S., London, and Bermuda were unwilling to offer decreases to many clients for the first time. They indicated their willingness to walk away from accounts if the client was unwilling to bind a flat or, at times, increased renewal proposal. This position might indicate that a hard market is developing.

Additional factors that continue to challenge underwriters include:

  • Claims inflation
  • Batch claims
  • Tort reform
  • Coordination by plaintiff attorneys
  • Shrinking client market
  • Oversupply of insurance capacity
  • Reduction in the availability of reserve releases

Medical professional liability insurers continue to face declining market share because of the ongoing acquisition of physicians and physician practices by hospitals and health systems. In addition, many newly trained physicians are opting to join larger health systems rather than enter into independent practice. According to the Conning Report (March 2017), the number of independent healthcare professionals has declined from approximately 62 percent nationally to approximately 33 percent from 2008 to 2016.

At the same time, there has been a commensurate increase of hospital-employed physicians over the same span. Healthcare reform accelerated physician employment that has been underway the past few years. Whatever reversals may occur with healthcare reform, they will likely not reverse the trend in physician employment since uncertainty in the marketplace does not promote independent physician practices.

Market and Provider Consolidation
Merger and acquisition activity announced in 2016 culminated in Sompo’s acquisition of Endurance in March 2017; Liberty’s acquisition of Ironshore in May 2017; and Fairfax Holding’s acquisition of Allied World Assurance in July 2017. These strategic transactions are intended to complement the acquiring carrier platforms and should not have an impact on MPL underwriting teams.

According to the year-end Conning Report, “MPL insurers are engaging in M&A activity as a means of attaining growth in an environment where organic growth potential is limited from shrinkage in the exposure base.”

According to a report published by the American Hospital Association, mergers can lead to efficiencies. Its study, Hospital Merger Benefits: Views from Hospital Leaders and Econometric Analysis, found that mergers resulted in a 2.5 percent reduction in annual operating expenses at the acquired hospital, could drive quality improvements from clinical protocols, and could expand the scope of services.

During the second half of the year, the merger activity focused on health systems, such as Ascension Health’s announced merger with Providence St. Joseph; HCA’s acquisition of a number of hospitals from CHS and Tenet; Advocate Health Care’s merger with Aurora Health Care; and Catholic Healthcare Initiatives’ merger with Dignity Health.

These announcements change the healthcare landscape dramatically by creating “Mega-Healthcare Systems,” which create challenges for insurance and reinsurance carriers that reduce competition and client bases.

U.S. Change in Tax Law and Impact on Bermuda-Placed Business
We are monitoring the impact of the change in the U.S. tax law that the House and Senate passed, and that President Trump signed in December 2017, on coverages that clients place with Bermuda insurance and reinsurance companies. According to Meyer Shields of Keefe, Bruyette & Woods, and reported in the Insurance Insider (December 22, 2017): “From a financial perspective, we think lower domestic U.S. tax rates will roughly offset taxes associated with intracompany cessions (particularly excise taxes and taxes applied to presumably profitable ceding commissions) that we think will largely disappear under the new tax regime, which is why our Bermudian EPS estimates aren’t changing much. On the other hand, we think there’s something of a strategic downside to the Bermudians, for two reasons. First, they are losing the pricing advantage embedded in tax rates that had been lower than those anticipated for domestic carriers. Second (and probably less significant), the shrinking difference between U.S. and Bermudian tax rates means an incrementally smaller opportunity for tax arbitrage that should incrementally reduce demand for reinsurance.”

Cyber Privacy and Network Security
Cyber attacks continued to make headlines across industry sectors and the healthcare industry was a prime target. WannaCry made headlines around the world, and severely impacted the UK’s National Health Service. While currently being blamed on North Korea, insurers are not denying coverage based on war exclusions. Ransomware attacks can significantly hamper healthcare providers’ ability to access patient histories, drug histories, surgical schedules, and other critical clinical information in a timely manner. These delays may create a greater likelihood of negative patient outcomes and loss of patient revenue.

Along with ransomware, wire fund transfer fraud via social engineering is also reaching epidemic proportions. While this coverage can be provided via a crime or cyber policy, in most circumstances, it is substantially sub-limited in both policies, although excess capacity is beginning to appear. Through mid-December 2017, the Identity Theft Resource Center (ITRC) has identified 373 data breaches in healthcare organizations involving a known loss of personal identifiable information (PII).

The Office of Civil Rights (OCR) breach portal lists a total of 2,211 healthcare-related breaches since its inception in December 2015, with the makeup of the breaches as follows:



As of October 31, OCR has now received 171,161 HIPAA complaints relating to such breaches. Civil penalties were imposed in 52 cases, for a total of $72,929,182 in civil penalties. Penalties have been as large as $5.5 million.

Despite this activity, there is competition for risks with good security maturity and loss histories.

Managed Care Organization E&O
Managed Care Organization (MCO) E&O continues to grow as an area of exposure. Considerable activity persists with health systems formulating Accountable Care Organizations, creating their own insurance companies to write health benefits, and participating in contracts with insurance companies in which providers assume expanded responsibility for disease management, enrollee tracking and management, and advisory services to outside practices.

Although the creation of smaller MCOs by hospital health plans has allowed insurers to diversify their books to include a portfolio of smaller accounts, underwriters are concerned about the increasing complexity of healthcare organizations. At times, the complexity makes it difficult to identify and quantify the potential risks of plan design, case management and general population health.

On a macro level, carriers are concerned with the uncertainty of the repeal and/or replacement of the ACA and continued consolidation of managed care entities. They are closely monitoring changes to the ACA. Changes in the funding and structure of the ACA may have a material impact on the managed care market.

Underwriters are increasingly concerned about current or future claims alleging:

  • Antitrust
  • Design and/or administration of cost control systems (incentives, quotas, etc.)
  • Down coding (insufficient revenue to providers) and allegations of deliberate slow reimbursement
  • Civil rights actions from patients who are denied care
  • Allegations of miscalculation of medical expense ratios
  • Releases of protected health information, personally identifiable information, and payment card information

The marketplace for managed care E&O coverages remains competitive. Many healthcare accounts place this coverage in their captives, but on smaller accounts that insure these coverages we are seeing the following trends:

  • Total number of markets writing this coverage is fewer.
  • Rates have remained static unless: (1) the insured has adverse claims development; and (2) there is a material change in exposure (e.g., number of enrollees, type of services provided etc.).
  • Underwriters do not seem to have any mandatory rate increases unless warranted due to changes in exposure or claims experience on the horizon for this type of coverage. However, carriers will seek rate and premium increases comparable with an increase in exposure.
  • Retentions (SIRs) will depend on the type and size of the organization, but we expect there will not be significant deviations from the past year.
  • Market appetite in this space remains unchanged and underwriters will continue to entertain everything from small managed care contracting vehicles on up to the large national health plans.

Medical Stop Loss: Health Reinsurance, Employer Risk & Provider Risk
In 2017, the medical stop loss and reinsurance market continued to see upward pressures on rates driven by the rising costs of specialty drugs and increased frequency of high cost ($1+ million) claims. Such pressures can be countered by high-quality data and willingness to adapt. High standards and detailed data often return a competitive, but disciplined market, while poor data results in a tough market. Additionally, the established and growing use of captives in this business leads to a wider access of markets willing and able to accurately price the risk.

Government regulations remain an important consideration moving into 2018. Despite the current administration’s unsuccessful attempts at repealing the Affordable Care Act in 2017, the legislation is expected to face some serious challenges in 2018 as lawmakers in opposition are expected to use all their available powers to weaken the bill. The ability to adapt in this ever-changing healthcare landscape and find underwriters who have adapted with it is essential.

Mergers and acquisitions of clients was a distinct challenge in 2017, as new leadership brought new risk management strategies different than the ones that had suited clients in prior years. The uncertainty of renewal in many cases created a need for greater client management and a push to win new accounts.

These types of market conditions present the insurance and reinsurance industry with both challenges and opportunities for innovation.

A few on-going trends and updates to note in regards to the medical market in general and the Provider Stop Loss and Employer Stop Loss markets are as follows.

  • Market Entrances and Exits
    • On October 15, Tokio Marine acquired American International Group’s (AIG) medical stop loss and organ transplant business. The deal is expected to boost the value of Tokio Marine HCC’s medical stop loss business to more than $1.3 billion in premium
    • In late 2017, Munich Re announced that they were exiting the Medical Reinsurance business and would not be binding or updating any of their outstanding Medical Excess of Loss Reinsurance accounts.
  • Exchange Lives
    • The 2017-2018 open enrollment period saw 8.82 million plan selections, indicating strong interest from consumers in getting or remaining covered. But 2018 is posed to be a challenging year for the market as opponents of the ACA attempt to remove several pillars of the law, specifically the repeal of the individual mandate and elimination of the cost-sharing reductions. Such actions would likely cause some of the original enrollees to forgo final coverage selection and depress enrollment numbers.
    • Major markets—Aetna, Anthem, Blue Cross Blue Shield, and Humana—have announced that they will be pulling out of the exchange market in 2018, citing large losses and the growing uncertainty surrounding the future of the ACA under the new Administration.
    • A number of major markets have had extremely poor experience with newly insureds, which has resulted in higher rates and large losses. With more data of the newly insured population becoming readily available, there is a push to better understand how to most efficiently and effectively serve this market segment.
  • Medicare Shared Savings Program (MSSP) and Next Generation ACOs
    • The total number of MSSP ACOs increased from 480 at the beginning of 2017 to 561 in January of 2018. Similarly, the total number of assigned beneficiaries increased from 9.0 million to 10.5 million.
    • With many ACOs in the final year of their upside-only risk contract (MSSP Track 1) in 2017, they will begin the shifting into the MSSP’s two-sided risk options effective 2018.
    • To ease this transition to Track 2 or 3, the Centers for Medicare & Medicaid Services (CMS) introduced Track 1+. Based on Track 1, this intermediary model tests a payment design that incorporates more limited downside risk compared to Tracks 2 and 3 (as well as elements of Track 3) to help ACOs better coordinate care. Furthermore, Track 1+ ACOs will be eligible to participate in Advanced Alternative Payment Models (APMs) under the Quality Payment Program created by MACRA.
    • The introduction of the Track 1+ model combined with the shift of many ACOs to two-sided risk contracts has increased the percent of ACOs in risk-based tracks from 9 percent in January 2017 to 18 percent in 2018.
    • The Next Generation ACO Model is an initiative for ACOs that are experienced in coordinating care for populations of patients. It will allow these provider groups to assume higher levels of financial risk and reward than are available under the MSSP.
    • In 2017, we found it difficult to find markets that were willing to price ACOs moving from Track 1 to Track 1+ or higher in 2018 due to their unfamiliarity with the risk. Our hope is that as more performance years of results are published by CMS, markets will feel more comfortable effectively pricing ACOs. Additionally, increased use of captives by ACOs will provide better market access.
  • Medicaid Accountable Care Organizations
    • Ten states have implemented Medicaid ACOs to align provider and payer incentives with the goal of managing costs and delivering quality care to beneficiaries. At least thirteen more states are actively pursuing them.
    • These ACOs, similar to their Medicare counterparts, will focus on value-based payment structures, measuring quality improvement and analyzing data.
    • Medicaid ACOs will also be required to provide financial guarantees, such as a letter of credit or surety bond. Consistent savings have been available through surety bonds over letter of credit pricing for Medicare ACOs and similar results are expected for Medicaid ACOs as they continue to emerge across the U.S.
  • Medicare Access and CHIP Reauthorization Act of 2015 (MACRA)
    • This Act creates a new Quality Payment Program to reward physicians for providing higher quality care to Medicare beneficiaries by implementing two payment tracks: Merit-Based Incentive Payment Systems (MIPS) where providers are evaluated on their performance in four categories; and Advance Alternative Payment Models (AMPs), that are designed for providers who have experience coordinating care. Risks and rewards are accepted by the provider with the promise of meeting quality measures. These two tracks will begin in 2019.
    • The first year of performance measuring began in 2017 and results will determine the payments to providers in 2019.
  • Specialty Pharmacy
    • Costs related to pharmaceuticals continue to increase year over year and cause financial challenges for health systems. Reinsurers continue to be impacted by multi-million dollar pharmaceutical claims.
    • Both high-cost orphan drugs and drugs developed to treat conditions like Hepatitis C are driving costs up due to their heavy use and high demand. Additionally, high-cost drug claims often require more time for the reinsurer to review, which can lead to delayed claim payments.
  • Self-Funding
    • Since the ACA passed there has been significant growth in self-funding. We have and continue to see many fully insured plans contemplate and successfully transition to self-funded plans.
    • Benefits of self-funding include more control over the plan document, less regulation, and flexibility to choose providers and networks that best fit the plan. Additionally, the ACA implemented the removal of limits, making Medical Stop Loss insurance a tailored solution for protecting those plans that elect to self-fund.
    • The number of claims exceeding $1 million more than doubled in the past five years, and now, although less than 2 percent of stop loss claimants produce costs over $1 million, those claimants account for 18.5 percent of the total stop loss payments. These higher associated claims costs are expected to somewhat slow revenue growth in the stop loss market; however, the risk-mitigation, customization, and regulatory savings aspects of the market will continue to make it an attractive segment of health insurance.

Emerging Risks

Opioid Crisis
The epidemic of opioid misuse and abuse is having a profound economic impact on individuals, employers, and other groups that sponsor health insurance plans, as well as on the care delivery system. Costs associated with opioid abuse have increased dramatically in recent years, including drug abuse treatment services and lost productivity. In just five years, claims charged to insurance companies to treat opioid dependence or abuse grew from $72 million to $722 million — an increase of almost 1,000 percent.

Advances in technology, the current physician shortage and the dramatic increase in the number of patients seeking care under the ACA, have led a growing number of healthcare facilities to expand their use of telemedicine to deliver services to patients in hospitals as well as in remote locations. Over half of all U.S. hospitals now use some form of telemedicine to treat patients.

Sexual Harassment
Last year, a study by The Journal of the American Medical Association (JAMA) found that nearly one-third of women in academic medical faculties reported having experienced workplace sexual harassment. In that report, women also perceived and experienced more gender bias than men. According to Becker’s Healthcare Review (6 December 2017), at least 3,085 employees at general medical and surgical hospitals filed claims of sexual harassment with the U.S. Equal Employment Opportunity Commission (EEOC) between fiscal years 1995 and 2016.

According to EEOC data obtained by BuzzFeed News, 170,000 sexual harassment claims were filed during this twenty-one period. Roughly 83 percent of the claims were filed by women, while 15 percent were filed by men. Two percent of individuals filing complaints did not specify a gender.

The major concerns raised by this data are the lack of sexual harassment and diversity training and sexual harassment policies in the industry.

Workplace Violence
Hospitals may be places of healing, but they also have become the scene of an increasing number of violent incidents. Such incidents not only put patients at risk but also medical professionals, who are often the targets of attacks, harassment, intimidation and other disruptive behavior. The incidence rate for violence and other injuries in the healthcare and social assistance sector in 2012 was over three times greater than the rate for all private industries.

The Complexity of Sepsis Related Claims
Healthcare-acquired infections (HAIs) cost the U.S. healthcare system billions of dollars each year and lead to the loss of tens of thousands of lives. At any given time, about 1 in 25 hospital patients has at least one such infection, according to the Centers for Disease Control and Prevention. Healthcare-acquired infections also come with a financial price of up to $9.8 billion a year, according to research published in 2013 in JAMA Internal Medicine.

Bad Bugs and Pandemic Infections
Growing concern about Ebola and other infectious diseases has forced healthcare facilities to review their current practices and consider the impact that a potential nationwide pandemic would have on their organizations and the communities they serve. The ability to deliver care with minimum disruption and safeguard the health of workers and patients will depend on planning and preparation measures that organizations undertake today. Organizations should consider a number of critical steps as they prepare for the potential pandemic.


The softness of the market over the past decade seems to be taking a slight turn toward tightening. While there is an abundance of capacity, the recent consolidation activity of medical professional liability carriers is likely to continue in order to sustain market share and create underwriting efficiencies.

Claim severity must continue to be carefully observed since the trend has been upward in recent years as evaluated by a number of carriers, such as Zurich, Berkley, C.N.A., and the Aon/ASHRM report; however, the upward trend to date is actuarially manageable, unlike the last years of the 1990s, which drove the last malpractice crisis. While there are fewer malpractice cases filed, they are more expensive to defend, thereby driving up legal and related expense for carriers and self-insured entities.

While the traditional medical professional liability, Managed Care E&O, and Medical Stop Loss coverage areas remain stable, emerging risks are evolving and present real concerns for healthcare organizations that require a proactive risk management approach. Consumers are also demanding a healthcare experience that mirrors the convenience and transparency of their banking, retail, transportation and other purchasing experiences. Healthcare organizations need to evolve with these changing demands from their customers while insurance carriers and brokers must provide cutting edge solutions to address these developing risks.

Management Risk


  • Directors & Officers Liability
  • Employment Practices Liability
  • Commercial Crime
  • Fiduciary Liability

Directors & Officers Liability

Premium/Capacity Overview
The Directors & Officers Liability (D&O) marketplace remained competitive in 2017. An abundance of capacity continues to keep primary premiums flat to slightly down in some classes and competition among insurers is causing excess A, B, C and A-Side layers to hit minimum premiums. As a result, in the absence of material changes in risk, prices declined modestly or remained flat for risks across most industry segments.

Self-insured retentions remained stable in the absence of significant growth, acquisition activity, claims experience or other changes in risk profile. In some sectors we even saw a decrease in retention rates and an expansion of coverage, particularly on informal regulatory matters.

Placement of policies overseas, whether as underlyers to master U.S. D&O programs or as standalone policies, continues to be an important conversation between brokers and companies with foreign operations.

D&O Claim Trends

  • Increased Federal Securities Class Actions - The number of federal securities class actions filed in 2017 surpassed the record-setting number seen in 2016. There were 432 securities class action fillings in 2017, which is a 44% increase over 2016. This substantial increase in filings is partially due to the continued rise of federal merger and acquisition objection lawsuits, with decisions in both state and federal court questioning the viability of “disclosure only” settlements. In 2017 a record was set with 197 cases. Securities class action settlements have generally stabilized over the past 10 years, but in 2017 the median settlement, as well as the average settlement, dropped significantly. The $25 million average settlement was 66% lower than in 2016. This significant drop was the result of a record number of settlements and dismissals (148 and 205, respectively). With no significant claims in 2017, faster settlements coupled with the high number of dismissals also drove down the attorneys’ fees to levels not seen since 2004.
  • Whistleblowers and International Securities Litigation - In 2017, the SEC awarded $50 million to 12 whistleblowers, which was a significant drop from the $111 million awarded to 34 whistleblowers in 2016. International securities litigation has continued to develop, along with increasing global regulatory activity.

Employment Practices Liability

Premium/Capacity Overview
There continued to be an abundance of capacity in the Employment Practices Liability (EPL) marketplace in 2017. Insureds with limited exposure changes and claims activity saw pricing and coverage terms remain relatively flat to slightly down. Underwriters continue to be cautious of their approach to risks with California-based employees, as the state remains a high frequency and severity jurisdiction. Notwithstanding this concern; however, most insureds with concentrated headcount in California saw their EPL retentions and premiums “right sized” in 2015 and 2016. Barring other material changes, those organizations saw somewhat flat renewal results as well.

EPL Trends

  • EEOC Activity Decreased – While the overall number of annual EEOC charge filings reached an all-time high following the recession in 2009-2011, filing activity appeared to bottom out in 2014. Filings began to climb again in 2015 and 2016. However, in 2017 there was an 8% drop in total EEOC charges filed.
  • Retaliation Claims – Continuing a trend that began in 2009, retaliation claims were the most frequently filed EEOC claim in 2017. While employer vigilance is a key to preventing discrimination and harassment in the workplace, attention must also be paid to the controls in place to properly address employee claims of retaliation.
  • Wage and Hour Litigation – This remained a primary concern for many organizations and will continue to be a major issue in 2018. Insurance products released in previous years to address the coverage more broadly have gained little traction, in light of terms and conditions that many insureds perceived as too costly. As a consequence, there continues to be minimal coverage available for the wage and hour exposure, with a small number of insurers offering low sub-limits for defense costs.

Commercial Crime

Premium/Capacity Overview
The Commercial Crime market remained stable in 2017; pricing held relatively flat on renewals with incumbent carriers. Where risks were actively marketed and when clients were willing to move Insurers, premium decreases were frequently achieved.

Commercial Crime Trends

  • Social Engineering/Fraud – An event in which a wrongdoer fraudulently induces an employee to transfer funds or assets to the wrongdoer, as in the case of wiring funds to an illicit account, is an example of what Insurers refer to as “social engineering”, impersonation fraud” or other similar terminology. Coverage is typically offered with sub-limits of liability, often starting at $100,000. A limited, but growing, number of insurers are willing to offer full limits coverage. Sub-limits higher than $100,000 typically result in an additional premium charge with a separate application requirement. Additional Social Engineering coverage can also be obtained through the Cyber Liability market, on a sublimited basis. Policyholders and their brokers should carefully scrutinize policy wording to ensure the coverage being offered is not unduly restrictive. As an example, it is common for insurers to exclude coverage for the exposure if the insured did not independently verify the appropriateness of the transfer request. Insurers frequently remove these limitations upon request for companies with otherwise adequate internal controls.

Fiduciary Liability

Premium/Capacity Overview
The Fiduciary Liability marketplace remained competitive throughout 2017; however, Insurers are increasingly attempting to press for higher premiums and retentions for claims brought in the form of class actions for organizations with over $1B in plan assets; organizations in the education/not-for-profit healthcare sectors; and organizations that have experienced “excessive fee” claims. Notwithstanding these pressure points, capacity in the marketplace remains adequate. As a consequence of this, for most risks, competition among insurers has largely offset upward pressures on premiums. In general, in the absence of material changes in risk, Insureds are experiencing renewals that are flat to +5% over the previous policy term.

Fiduciary Liability Claim Trends

  • Excessive Fees Claims – Consistent with recent years, there has been noted activity by plaintiffs’ law firms, asserting claims of excess fees in 401(k) plans. In these matters, plaintiffs generally allege that plan fiduciaries breached Employee Retirement Income Security Act of 1974 (ERISA) duties of loyalty and prudence by offering investment options that carried high fees and performed poorly. In certain instances, excessive fees allegations have also been accompanied by “proprietary fund” cases, which are allegations that fiduciaries breached ERISA duties by selecting mutual funds and other investment options that were managed by affiliates of the plan sponsor and not chosen in the “best interests” of plan participants. Excessive fees claims have also been brought in the form of class actions against prominent universities.


Based on the results of 2017, along with the continued excess capacity in the insurance marketplace, we do not see prices increasing in the near term for Directors & Officers Liability coverage. In 2018, we anticipate that capacity, and therefore competition, will continue to remain abundant for Employment Practices Liability coverage. The same holds true for Commercial Crime, with no major shifts expected given abundant competition.



  • Marine Cargo & Stock Throughput
  • Marine Hull & Liability

Premium Overview

Coverages Q3-Q4 2017* Q2 2017
Marine Cargo Flat Flat to slight decrease
Marine Hull & Liability

Flat with slight increases in the last few weeks

Flat to slight decrease

* Based upon renewal with incumbent market. Greater rate decreases/broader coverage terms could be achieved with marketing.

The marine cargo marketplace remained soft. Coverage terms were extremely broad for most of 2017 with nearly all markets agreeing to broker manuscript “all risks” policy forms.  Profit sharing was available for most accounts when marketed. Commonplace among marine policies, it provides insureds with a partial return on premium based on loss history. The maximum is generally 25%.

The U.S. winds Harvey, Irma and Jose did initially prompt a hardening of rates but the resolution of the markets weakened after a couple of months, until the West Coast fires and mud slides brought a determination to levy increases in premium on renewal. Now, winery risks on the West Coast in particular, storage risks and risks with catastrophic exposure can expect a toughening of terms.

The U.S. and overseas Marine Hull and Liability insurance market(s) is, in many ways, similar to the cargo side of the Marine market.  Our forecast for the near future is an end to rate reductions on expiring renewals for loss-free accounts. Accounts with losses will see rate increases depending on the extent of the loss experience.  However, much like the cargo side and the property market, rate increases will be tempered by the oversupply of capacity and hungry non-incumbent players.

Marine Cargo & Stock Throughput

Pricing Overview

In the early part of the year, for accounts without storage risks, rate reductions were the norm for those with 3-year loss ratios under 60%. For most of the year, even accounts with unfavorable loss experience were able to leverage market competitiveness to maintain flat rate renewals with incumbent markets at renewal.

The markets toughened following the wind losses associated with storms Harvey, Irma and Jose. However, their resolve weakened after a couple of months as some losses, particularly in the Caribbean, did not materialize as badly as feared. Even those markets that did have significant accumulation of losses in the Caribbean were forced to accept only moderate increases in premium for fear of losing the business to other still eager markets.

The fires in California, followed by the mudslides, did cause the markets to stiffen suddenly towards the end of 2017. There are now requests for premium increases even on clean renewals, although this is not being achieved universally. Insurers are concerned about the potential claims from ‘smoke taint’ to wine stocks in the Napa and Sonoma valleys and this is severely affecting the appetite for winery business as a whole.

The results and rating methodology for stock throughput accounts varied by underwriter. While the marine cargo market continued to handle many global storage risks, especially those with catastrophe exposures, property insurers continued to offer competitive pricing for static risks in 2017. This competition between marine and property markets resulted in savings of 5-10% for most insureds in the early part of the year.

Capacity Overview

There remains a surplus of capacity. This condition is driven by profitable combined ratios and new players seeking to gain market share by offering competitive pricing and insuring conditions. Brit Ltd. is the latest new retail entrant to add to the list of new markets opening offices in the U.S. including, but not limited to, Munich Re, Swiss Re and Berkshire Hathaway.

Insurers can build upwards of $100MM / $500MM in capacity for a single insured’s transit and storage exposures, respectively. Most domestic U.S. insurers will provide at least $20MM in transit capacity and $10MM in CAT storage capacity. To accommodate higher limits, quota share and layered structures with multiple insurers are commonplace in the U.S. and London. It should be noted that London market can offer higher CAT towers, which means split placements are often the best combination to meet client’s needs.

Reinsurance rates are hardening, with some direct insurers suffering increases reportedly in the 20-25% range. It is expected this will impact direct rates during 2018.

Coverage Overview

Coverage terms were extremely broad in 2017 with most, if not all, markets agreeing to broker manuscript “all risks” policy forms.

Profit sharing was available for most accounts when marketed, generally with a maximum of 25% of annual premium eligible to be returned dependent upon loss experience.


We expect to see premium rises of 5%-10% in 2018, and more for those risks with excessive CAT exposure.

Marine Hull & Liability

Pricing Overview

The Marine Hull and Liability insurance market(s) continue to enjoy a wealth of capital and the ability to provide an impressive amount of limit capacity. However, as a reaction to a more malignant claims year, including substantial catastrophe losses in the Gulf of Mexico and hull total losses, there was a snap hardening of the market in the final quarter of 2017. Lloyd’s syndicates in particular attempted to increase rates on both new business and renewals. Such increases ranged between 5% and, in exceptional cases, as much as 20% for distressed business.

The hardening witnessed in the later months of 2017 is now being obstructed to a degree as insurance markets become unaligned with ‘rogue’ elements seizing on an opportunity to increase their market share by writing new business to them on the assured’s expiring terms. Consequently, we foresee the first two quarters of 2018 demonstrating a small rate increase on the whole, but with insurers looking to retain favorable accounts by renewing on same terms as expiry. Reductions continue to remain challenging in the current climate.

Traditionally, accounts with a good claims record and demonstrated conscientious procedures for safety and maintenance enjoy competitive rating and terms. Extra market capacity and increased competition is even giving accounts with fair to poor claims records desirable terms. Hull markets, particularly overseas, can be very competitive while worldwide Liability markets strenuously compete to retain existing clients or win new business.

There has been considerable consolidation of blue water fleets, particularly for container carrying vessels. There have been contractual "mergers" of many well-known shipping companies in both Europe and Asia to address the over capacity of trading vessels. Alliances of container fleet owners have, or will have, a dramatic effect on distribution and trade of these vessels.

While the price of oil is comparatively competitive, it has shown an increase in the per barrel costing from a year ago but overall remains relatively low. Consequently, the shipment of oil has stagnated, with many oil rigs dormant or used only temporarily in the U.S. / Mexican Gulf, the North Sea and in the Middle East.

In the short-term insurers will attempt to drive rises where possible. Reinsurance costs will rise by 5-10% on average with the likes of Norwegian Hull Club and Amlin seeing substantially larger increases (in the region of 25%). As we approach Q2 the markets tenacity for driving rate rises will almost certainly diminish as the continued over supply of capital and ‘top line’ underwriting’ will reignite the ‘race to the bottom’ mentality with insurers attempting to secure and grow their market share at almost any cost.  Competitive insurance terms and pricing should continue through 2018 even if small rises are seen in the early stages.

Capacity Overview

Reinsurance costs are increasing due to some substantial market losses in the 2017 year of account. There will be a capacity withdrawal from certain Marine classes like Yachts and Cat perils.

Coverage Overview

With the exception of Cyber, which is being addressed on a daily basis and is a major concern, terms and conditions are negotiable.


Our forecast for the near future is an end to the reducing market with expiring renewals available on loss-free accounts. Accounts with losses will see rate increases varying upwards from 5% depending on record, but such rate increases will be tempered by the oversupply of capacity. Coverage conditions will be adapted to the needs or requirements of an Assured.

Professional Firms

Market Overview

The Professional Firms market for Accountants and Lawyers is highly competitive. Likewise, consolidation among insurers has yet to have any meaningful impact on rates, due to the large number of underwriters in this class. Despite abundant capacity, insurer management is increasingly focused on underwriting profit, resulting in limit, retention and appetite discipline. Broad coverage continues to be available.

Premium Overview

Coverages Q4 2017 Q3 2017
Accountants Professional Liability Flat to slight increase Flat to slight increase
Lawyers Professional Liability 

Flat to slight increase

Flat to slight increase

Capacity & Coverage Overview

Accountants Coverage
Market conditions remain soft, with significant capacity available from both domestic and offshore insurers. There are some signs of firming, with Insurers becoming less aggressive than in recent years, including incumbent markets being less willing to significantly reduce premiums to retain business. Firms with substantial growth or paid claims are seeing increased premiums and retentions. Domestic insurers are seeking ways to grow their premium base, and are willing to consider opportunities outside of their traditional focus areas, which may lead to further softening.

Large firm segment – Firms continue to show strong revenue growth from both organic and acquisition activity, with Insurers being able to capture only a portion of that through premium increases. Clients with losses or open claims are experiencing larger increases, which in many cases are being partially or totally offset by increased retentions. Some Insurers are reducing capacity to more conservative levels. Broad policy wording and customizable coverage continues to be provided.

Small to mid-size firm segment – Premiums are generally flat. Insurers traditionally focusing in the smaller firm segment have been moving upstream and showing interest in larger firms. While this is partly driven by the growth in average revenues, Insurers have seen good results in the small firm segment and now seek to expand their target market.

Lawyers Coverage
Lawyers’ professional liability rates remain at historically low levels due, in large part, to abundant capacity available in the U.S., London and Bermuda. In 2017, firms generally saw flat to +/-2% rate renewals. However, faced with frequent severe claims, the lawyers’ professional liability market has exhibited underwriting discipline regarding line size, self-insured retention levels and law firm risk profile. Firms with a history of losses face greater challenges maintaining low rates and favorable terms and conditions than in the past.

Large firm segment – In response to flat demand for legal services, law firms have grown by increased acquisition and lateral hire activity. Consequently, underwriters have increased their focus on minimizing exposures to, and charging for, prior acts of incoming personnel. Firms in this segment experienced modest rate increases and in some cases, increased self-insured retention levels on primary layers. Rate increases on the primary layers have been partially offset by leveraging abundant excess capacity. Firms with large losses struggled to avoid more significant rate increases. Broad coverage and capacity in excess of $600M is available to this segment.

Mid-size and small segment – Although there was ample capacity interested in writing this segment, achieving a rate reduction was less likely than for large firms. Generally, firms in this segment experienced flat to modest rate increases of 1 or 2 percent. During the last half of 2017, underwriters exhibited interest in offering rate relief in exchange for higher self-insured retentions.

Firms with large losses, or multiple losses in excess of self-insured retentions, also saw greater rate increases and were more subject to adjustments of self-insured retentions. Moreover, firms in this segment were less likely to purchase higher limits and therefore could not offset rate increases by leveraging excess-only insurers. A variety of coverage levels and abundant capacity is available. It is, however, worth noting that pricing in the U.S. has been, and continues to be, more aggressive than in the London market due to more stringent minimum premiums per million on claims-free risks.


Soft market conditions and healthy capacity should continue into the first half of 2018. Firms with clean records will continue to see competition for their business, while those with claims will see some upward rate or retention pressure. Although abundant capacity will keep rates in check, taking advantage of favorable market conditions will require planning and knowledge of the market and its many participants.


Market Overview

Last year ended much differently than it began. Coming into the year, the property market had not seen a significant storm since Superstorm Sandy in 2012, and had not seen a major hurricane make landfall in the U.S. since Katrina/Rita/Wilma in 2005. Even through the first half of 2017 things looked good, as catastrophe losses were 35 percent below the ten-year average, totaling an estimated $22B. Unfortunately, things quickly changed in August. Catastrophic events during the last five months of the year pushed 2017 to be the costliest property loss year ever at an estimated $136B. The previous high water mark was set in 2011 at $126B in inflation-adjusted dollars. Major catastrophes in the second half of 2017 included the following:

  • Hurricanes Harvey, Irma and Maria
  • Chiapas and Central Mexico earthquakes
  • Wine country and Sonoma, CA wildfires

The underwriting community was quick to react and worked to set the stage for rate increases and tightening terms following many years of pricing erosion and softening terms. Thus far, early 2018 renewals have seen a wide range of mixed results, from flat to steep increases, depending on 2017 loss experience and ongoing natural catastrophe exposure. The new year looks to be a time of testing as the industry reacts to its worst cat loss year, but with abundant capacity yet to be deployed.

Premium Overview

Coverages Q4 2017 Q2 2017
All Risk Property Flat to single digit rate increases for most renewals Flat to 12.5% decrease (average 8%-9%)

During the first half of 2017, there was a continuation of the rate softening insurance buyers had enjoyed for the previous five plus years. Rate decreases slowed to low to mid-single digits, but terms continued to broaden as competition for business was ongoing.

Immediately after the late year hurricanes, messaging from insurers took different paths. Some carriers positioned for across the board rate increases, trying to seize the moment and turn the market while others were more specific by account. There was immediate talk of 20 – 50 percent rate increases across the market.

In general, the majority of late year renewals saw flat to single digit rate increases. However, there were pockets of significant hardening that experienced rate increases, such as Caribbean risks; U.S. mainland coastal properties; and frame habitation and flood exposed properties.

Following the January 1, 2018 treaty reinsurance renewals, which can be taken as a bellwether for what primary insureds will see, here’s what can be expected for first quarter renewals in 2018:

  • Loss-free, non-cat exposed portfolios: Flat to 7.5% rate increases
  • Loss-free but cat exposed portfolios: 5% - 15% rate increases
  • Cat losses with ongoing exposed portfolio or challenging occupancies like habitational: 15% - 30% rate increases

Factors that can moderate the pricing include general policy and CAT deductible changes, available new capacity, program structure, limits and sublimits.

Capacity Overview

Reinsurance treaty renewals on January 1, 2018 turned out to be less punitive than expected, averaging flat to 7.5 percent increases. The CAT losses are proving to be earnings events with relatively benign impacts on capital. The Insurance Linked Security market, which many thought would shrink following the 2017 CAT events has heightened interest from potential investors. A combination of a resilient traditional reinsurance/insurance market and the continued buoyancy of the ILS market, have supported robust levels of available capacity.

Coverage Overview

In concert with pricing adjustments on wind and flood exposed properties, underwriters will potentially look to increase deductible levels and/or remove, or increase, deductible caps that may be in place.

The National Flood Insurance Program (NFIP) took a significant hit from Hurricane Harvey and is seeking refunding. The ultimate structure of the NFIP going forward could dictate how insurers attach to high hazard flood exposed properties. Hail exposed portfolios could also see scrutiny, as insurers seek percentage deductibles on hail/convective wind risks in certain areas of the country.

Additionally, a number of carriers that had been offering un-aggregated first party cyber and/or business interruption coverage with no triggering requirement of physical loss or damage are now underwriting these risks with much more scrutiny. In-depth questionnaires regarding cyber security measures and the overall breadth of exposure are becoming the norm. Some carriers are imposing limit restrictions or exclusions in their property policies, as many take the position that this coverage belongs in a specified cyber policy, underwritten by cyber underwriters.


Looking forward, 2018 will prove to be an interesting year, as it tests the will of insurance carriers who are looking to gain back rate position that they have given up over the last half decade in the face of an abundance of capacity in the marketplace.

An abundant supply of capacity seems to be thwarting insurers’ attempts to build on the momentum that immediately followed the major catastrophes of last year. January reinsurance and insurance renewals came in with lower increases, on average, than many expected. We expect continued tightening through the year’s renewals of the capacity and terms offered relative to first party cyber coverage contained in property policies. We also expect CAT deductibles to see some upward pressure.

Recommendations for 2018 renewals include the following:

  • Start the renewal process early
  • Differentiate your risk with detailed, accurate exposure data
  • Get incumbent indications and expectations upfront
  • Talk to new markets throughout the year, not just during the marketing process
  • Use the models that the underwriters use to state your case
  • Decide what’s most important and what’s not and be willing to negotiate on the less important things
  • Diversify your market portfolio – consider U.S. domestic, European, Asian, Bermudian and Lloyds’ markets


Market Overview

The Surety market continued its profitable trend toward a pure loss ratio around 14.9 percent on what appears to be an overall premium increase of 5.6 percent. In 2017, ENR 400 contractors had combined volume that exceeded the previous high water mark for the industry, which was set in 2008.

The Contract and Commercial surety industries are predicted to grow five to ten percent in 2018. The recovering economy has allowed surety to grow as business and construction recovers and solidifies. Increased public infrastructure spending, specifically in the transportation, education and military sectors, projects favorable outlooks for contract surety.

Premium Overview

Coverages Q4 2017 Q2 2017
Contract Surety Flat to slight increase Flat to slight increase
Commercial Surety Flat to slight decrease Flat to slight decrease

Coverage overview

Notable Trends

  • Recent entrants to the market ramped up their sales efforts and many saw double-digit gains in written premium volume.
  • Reinsurance continued to be plentiful and relatively cheap.
  • Fierce competition in certain market sectors created continued pressure on rates.

Contract Surety
ENR 400 contractors continued to experience significant growth in their backlog. Healthcare, Education, P-3 type infrastructure, and multi-family continued to be strong markets for construction companies. The Contract Surety space saw increased use of collateral arrangements and funds control to enhance the credit capacity of small and medium-sized contractors. Rates were relatively firm.

Commercial Surety
The Commercial Surety sector continued to show solid premium growth. The replacement of bank letters of credit with surety bonds for certain obligations continued to gain momentum. Rate competition continued to be fierce for investment grade credits. New entrants and plentiful reinsurance continued to put rate and underwriting pressure on all commercial surety players.

There was an increase in the use of surety bonds in place of bank letters of credit in the EU last year, unlike previous years, wherein bank letters of credit were used almost exclusively. The industry continued to entertain weaker credits.


The surety industry will face some major challenges in 2018. Barring a major catastrophic economic event, rate and underwriting pressure will likely be the norm. The energy space, a heavy user of surety credit, is particularly challenged as the prices of coal, oil, and natural gas have plunged.

The overall credit picture in the commercial space continues to weaken as many underwriters are entertaining credits far below investment grade, albeit at a hefty price.

The surety industry is positioned to meet underwriting losses due to strong balance sheets, judicious collateral positions, spread of risk via multi-company participation and the continued use of reinsurance. M&A activity should continue in 2018.

Transportation & Logistics

  • U.S. Customs Bonds/Transportation Surety Bonds
  • Logistics Liability (Errors & Omissions, Third Party Liability, Contingent Cargo or Cargo Liability) for domestic and international freight intermediaries

Market Overview

In the second half of 2017, the transportation insurance marketplace remained competitive in this relatively soft marketplace. Competition kept rates and premiums for Logistics Liability policies stable. Rates are expected to remain consistent in 2018.

Rates for Customs Surety are expected to remain flat for the duration of 2018, although uncertainty around the handling of liquidated damages for late and inaccurate ISF filings as well as the increased number of Anti-Dumping cases across the U.S. presents some additional risk.

New Products
We have seen a growing demand for cyber liability insurance in the marketplace. Clients often act as freight intermediaries, accepting funds on behalf of their clients to pay duties and freight charges. There is a significant risk associated with these activities; that risk should be mitigated with a comprehensive cyber liability program.

If Customs and Border Protection (CBP) decides to adopt a secondary customs bond for importers of antidumping and countervailing duties (AD/CVD) merchandise, we can expect new opportunities as well as challenges.


For Ocean Freight Forwarders and Non-Vessel Operating Common Carriers (NVOCCs), Logistics Liability policies are generally underwritten based on the number of Twenty-Foot Equivalent Units (TEUs) shipped or by a client’s gross revenue. The nation’s major container ports handled an increase in the number of TEUs in 2017 over the previous year.

During the year as a whole, and especially in the final quarter, the transportation insurance marketplace remained highly competitive, which kept rates and premiums for Logistics Liability policies relatively stable. Renewal premiums also remained steady during the same period. With increased competition, insurance markets have looked for new ways to separate themselves from their competitors.

Cargo theft remains a big concern within the supply chain. It is important for Logistics providers that arrange shipments to high theft areas to be aware of this and inform shippers to purchase All Risk Cargo Insurance/Shipper’s Interest policies for these shipments. It is also important for Logistics providers to have a Logistics Liability policy in place to help defend their companies in the event of a lawsuit or formal claim received as a result of these losses.

The number of cargo theft incidents in Europe, the Middle East and Africa (EMEA) rose by 41 percent in the third quarter of 2017 over the same period in 2016, according to analysis by Sensitech Inc. However, cargo theft in the U.S. fell 36 percent in the fourth quarter of 2017, according to CargoNet. For the year, cargo theft dropped nearly 17 percent.

Coverage Overview

U.S. Customs / Miscellaneous Surety Bonds

Significant factors affecting these product lines include:

Presidential Executive Order on Establishing Enhanced Collection and Enforcement of AD/CVD and Violations of Trade and Customs Laws – The CBP considers the collection of AD/CVD to be a priority trade issue. This is due to the way duty rates on goods subject to AD/CVD are retroactively assessed, often many years after the goods enter the United States. Collection shortfalls have been significant, at $5.7 billion over the past six years according to CBP. On March 31, 2017, an executive order was issued to alleviate these shortfalls by directing CBP to implement a risk-based bonding plan to secure liability of AD/CVD. This plan may create a new, supplemental, customs bond for importers of AD/CVD or create a new primary bond calculation for importers of subject goods.

Logistics Liability Insurance

As intermediaries continue to expand their footprint into the supply chain, they will experience greater exposure to risks, which will warrant a comprehensive insurance program. Logistics Liability insurance is designed to provide coverage to freight intermediaries for cargo damage, negligence, third party death, bodily injury and property damage claims.

Intermediaries should look for a program with broad coverage that includes a variety of options and enhancements, which may include:

  • Errors & Omissions or Professional Liability
  • Contingent Cargo or Cargo Liability
  • Third Party Liability, Contingent Auto or Freight Broker Liability
  • Abandoned or Uncollected Cargo
  • Fines, Duties, Penalties & Regulatory Defense
  • Claims by an Authority
  • Claims Expenses


U.S. Customs Bonds rates should remain flat throughout 2018, with an increased focus on underwriting and collateral requirements.

Lower insurance premiums for Logistics Liability policies, the availability of broad coverage options and increased capacity are expected to continue through the beginning of 2018. In this relatively soft marketplace, strong competition will force insurers to keep rates and premiums stable for the first quarter of 2018.



This material is for informational purposes only and not for the purpose of providing legal or insurance advice. Insurance coverage, and the terms and conditions relating to such coverage, will vary. No representations or promises are made that any particular insurance coverage will be available to any individual or entity seeking such coverage. Integro is not a law firm and does not provide legal advice. If such advice is needed, consult with a qualified adviser.