Insurance Market Outlook 2020 - Mid-Year Update

Insurance Market Outlook 2020 - Mid-Year Update

One of our roles as your insurance advisor is to keep an eye on insurance industry trends and stay ahead of the curve as to the impact changes may have on our client partners. As every year, we did that in January … Right, and now it seems like we're in March 125th, 2020 or whatever the days amount to since the pandemic started. It’s time for a mid-year update

First off, major kudos to the entire HIG team who we’ve never been prouder of. They pivoted literally over night to, not only working exclusively from home, but handling an immensely increased workload. There were no days off for them and I remain humbled by their efforts and diligence through this.

The pandemic has had a huge impact on the insurance industry as whole in many ways. The ‘hard market’ insurance environment we spoke of over the past 12-18 months that has impacted virtually every type of insurance with increased costs, limited capacity and far tighter underwriting guidelines, has gotten more severe in the last 3 months. Insurance companies and re-insurers alike have narrowed their appetite, reduced their capacity to write business, and severely tightened underwriting guidelines more than ever before. Add to that multiple catastrophic weather related events (“50 year floods” are annual events now) and it’s not a good combination to say the very least.

As insurance companies have widely communicated previously, property coverage requires there to be a direct physical loss or direct physical damage and that business interruption coverage will not be triggered for a loss caused by a virus or bacteria.

One of things that has subsequently emerged out of the pandemic is Canadian insurers are making changes to their coverages that fall in line with the rest of the global insurance marketplace. Reinsurers globally are now requiring explicit virus and bacteria exclusions. As a result, we are seeing more companies adding a virus and bacterial exclusions to property policies, so we’ll be seeing more of that.

Directors & Officers Liability is seeing one of the most severe swings in coverage availability and cost. Reality, restaurants, wind power & transportation sectors continue to be challenged. Increased disclosure & costs as well as coverage limitations continue in these areas.

We held a “COVID-19 and Insurance” webinar which you can see here on our COVID-19 Page that is updated regularly with how insurance companies are responding and other general information. We’ve got a lot of resources available to us so if you have questions, let one of our advisors know or This email address is being protected from spambots. You need JavaScript enabled to view it..

Our principal focus remains to advise our clients on the best road forward in regards to their insurance programme.

Here’s to a healthier second half of 2020, from your Hubbard Insurance Group advisor team.

 

 

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