Life and annuity sales undercut by pandemic, interest rate drop Life insurance premiums may decline 6% globally through the end of 2020 and by 8% in advanced economies, while a recovery of 3% growth is projected overall for 2021. “We’ve given way more broad coverage than we were comfortable with. It’s also exacerbated the hard insurance market, now 21 months old, which has proven to be one of historic proportions. Pricing increases for the previous quarters were typically single-digit, but several headwinds mean that pricing increases may persist and even accelerate in the next 12 months. Commercial property policyholders will see ongoing price increases and cuts in capacity through 2020, as insurers maintain discipline, making for a difficult market, industry experts say. Mar 1, 2021 Additional Capacity for Amwins Exclusive Solutions. 7kh 4 5,&6 8. “We’re seeing double-digit rate increases across the portfolio,” but the level of rate increase varies, said Michele Sansone, president of the North America property insurance business for Axa XL, a unit of Axa SA in New York. &rpphufldo 3urshuw\ 6xuyh\ uhvxowv frqwlqxh wr sruwud\ d fkdoohqjlqj vhw ri frqglwlrqv ryhudoo zlwk pdq\ sduwv ri wkh uhdo hvwdwh vhfwru vwloo vwuxjjolqj 022020 Global Insurance Outlook The annual EY Insurance Outlooks represent a perspective on key issues shaping the industry in the near term (three years). A number of classes of insurance experienced a tumultuous time during 2019, with many symptoms of a hard market likely to continue well into Q1. Property insurance rates have been increasing since last year, as a result of significant catastrophe losses in 2017 and 2018, and the increases are gaining momentum, industry executives say. “Every account is different,” she said. This will limit your search to that combination of words. Certainly you’re seeing more conservatism out there in policy language,” he said. Property insurers are retreating in some catastrophe-exposed areas, said Jeff Ellington, vice president, business development, of Atlas Insurance Management, based in Charlotte, North Carolina. Globally, Lloyd’s, the world’s biggest insurance market entity, reported a profit of $2.8 billion for the first half of 2019, following two full years of losses. The four trends that define insurance in 2020 The insurance industry stands on the precipice of profound change. “Carriers are strictly following their disciplined underwriting guidelines as well as the modeling to determine how much capacity they can put out for catastrophe-exposed accounts,” Mr. Dove said. Throughout this comprehensive guide, we’ve asked our team of P&C experts to describe what various industries can expect as they look to 2020 and the insurance solutions that can lessen the blow. We are looking at some accounts that are probably going to see their third rate increase,” he said. Amwins to buy rival wholesaler Worldwide Facilities, COPYRIGHT © 2021 BUSINESS INSURANCE HOLDINGS, Cyber insurance rates to increase 20-50% this year: Aon, Former Aon exec to lead Marsh's national public entity practice, AIG, Beazley units not obligated to pay up in phishing case, Aon’s $30 billion Willis bid faces EU antitrust warning: Sources, Employers need to address workplace ‘pandemic fatigue’: Experts, Amwins to buy rival wholesaler Worldwide Facilities. “It depends on an account where it fell in terms of how much rate the market would have got last year, or in some cases the previous year. 3 Contributing Factors to Rate Increases “If they are not cat-exposed, this might be an opportunity for them to see if they can take on additional potential risk, by taking a higher deductible and mitigating some of those increases through that deductible or self-insured retention,” Ms. Peed said. They complement the NextWave series, which takes a longer-term perspective (five years and beyond) and examines specific market scenarios that will shape the future of the industry. Cyber insurance rates to increase 20-50% this year: Aon, 2. Jan. 1 renewals saw rate increases across the board in property, though the level of increase varied by geographic location, catastrophe exposure and loss history by individual account, they say.