Insurance in 2021: A tale of the ant and the grasshopper

Like Aesop’s ant, insurers must take this time to plan and ‘prepare for winter.’ (Getty images/ALM Media archives)

The insurance hardening market cycle that began more than three years ago is being exacerbated by falling investment returns from the low-interest-rate environment as well as the onslaught of risks associated with the coronavirus pandemic and climate change. Insurers experienced higher claims across almost all product lines in 2020.

Global commercial insurance pricing increased by 20% in the third quarter of 2020, according to Marsh’s Global Insurance Market Index. It was the largest quarterly increase in more than eight years.