Discusses expectations of hard market continuing into 2021 based on Willis Towers Watson (WTW) in its 2021 Insurance Marketplace Realities Report.
December 14, 2020 at 05:53 AM
Thank you for sharing!
Your article was successfully shared with the contacts you provided.
Insurance is cyclical in nature, meaning that there are hard markets and there are soft markets. Insurance companies must make a profit, and hopefully earn investment income off of the premiums received. There may be years where there are fewer losses than other years, but companies must make enough money to not only cover the losses in the current year, but have enough money set aside in reserve to cover future losses. They use actuarial methods to try and predict future losses based on past experience but that does not always hold true. And 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. Thus, for many lines of business, we are currently in a hard market.
This premium content is locked for
FC&S Expert Coverage Interpretation subscribers.
Request a Free Trial today to enjoy unlimited access to the trusted solution for successful interpretation and analyses of complex insurance policies.
Trusted, quality content from industry experts with over 60 years insurance experience, combined
Customizable alerts of changes in relevant policies and trends
Search and navigate Q&As to find answers to your specific questions
Filter by article, discussion, analysis and more to find the exact information you’re looking for
Continually updated to bring you the latest reports, trending topics, and coverage analysis
Already have an account? Sign In Now
For enterprise-wide or corporate access, please contact our Sales Department at 1-800-543-0874 or email [email protected].
Get Answers Directly From the FC&S Experts
Submit your coverage interpretation question to the editors of FC&S for quick and reliable information.