Insurance to see hard market conditions across lines in 2021

In recent years, there have been a number of unprecedented catastrophic losses that have negatively affected the capital held in reserve by insurers and reinsurers, creating a hard market for many lines of business. (Photo: gopixa/Shutterstock)

According to Willis Towers Watson’s 2021 Insurance Marketplace Realities Report, hard market conditions are expected to continue into 2021, with rate increases in almost every line.

The most affected lines will be property, umbrella, directors and officers (D&O), and fiduciary, followed closely by cyber insurance. Non-challenged properties are predicted to see increases of 15% to 25% in 2021, while umbrella increases will stagger from 30% for low-moderate hazard to 150% for high hazard excess. All categories of D&O are expected to see double-digit increases in 2021, with some as high as 70%.