or Non-CAT, these insureds could see upwards of a 60 percent or more increase in their premium if they have a poor loss history. Reducing the Impact With the market hardening, organizations will feel the impact on their income statement. This could mean all divisions are forced to make cuts to their budget, employment, etc. However, with proper forecasting, analysis and planning, the severity of the impact on PAGE 2 Navigating a Hardening Property Market Continued net income can be reduced. Quarterly or bi-annual assessments can help identify trends or changes in the market. In turn, organizations can properly and effectively make changes as needed to deal with the forecast more proactively rather than reactively. This effort is often lead by the finance and risk team. Two areas of the property policy that might be analyzed to reduce an organization’s premium cost are Limits and the Coverage Form. PROTECTING YOUR PROPERTY ® 800.858.3900 | ggg-ai.com Sheila E. Salvatore, Editor | Editor@AdjustersInternational.com Copyright © 2020 Adjusters International, Ltd. All Rights Reserved. E08-1021 Insights for Your Industry® is published as a public service by Adjusters International, Ltd. It is provided for general information and is not intended to replace professional insurance, legal and/or financial advice for specific cases. Property Non-Catastrophic Up 10% Up 10% to 20% Good Loss History CAT Property Up 10% to 40% Up 25% to 40% + Minimal Loss History CAT or Non-CAT Property Up 10% to 40% + Up 30% to 60% + Poor Loss History Primary General and Products Liability Flat to up 15% Up 5% to 10% Primary Automobile Liability Up 5% to 10% + Up 15% to 25% Fleet Lower than 200/Good Loss History Primary Automobile Liability Up 15% + Up 10% to 15% Fleet lower than 200/Poor Loss History Umbrella & Excess Liability Up 5% to 20% Up 10% to 25% (Middle Market Buyers) Layers possibly reduced (Factors in contraction of limits) Umbrella & Excess Liability Up 5% to 20% Up 10% to 25% (Risk Management Buyers) Layers possibly reduced (Factors in contraction of limits) Directors and Officers Up 10% to 30% + Up 25% to 50% Public Company 100% + if “troubled” Private Company Up 5% to 10% Up 5% to 20% Management Liability 20% is claim dependent Crime Down 5% to up 5% Up 5% to 25% Due to Social Engineering Network Security & Privacy Flat to 5% Flat to 10% (Cyber Insurance) Product Line Midyear Update Q4 2019-2020 USI Rate Forecast by Product Line SOURCE: USI COMMERCIAL PROPERTY & CASUALTY MARKET OUTLOOK — Q4 2020
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