Author: Eileen Yuen
With nearly two quarters of 2021 in the books, we continue to see a challenging market environment for financial institutions. Across most coverage lines, insureds are experiencing a rise in rates with no one single event as a driving factor, but rather, multiple forces contributing to premium increases. These elements vary a bit within a given coverage line, but ultimately are propelled by issues consistent among insurers: COVID-19 losses, social inflation, natural disasters, cyber threats and more. Compounding the matter is the insurance industry's inability to offset these results through investment income, as a result of a continued low interest rate environment.
In this midyear report, we'll examine these market dynamics more closely for some of the major coverage lines, offering our insights into what financial institutions can expect throughout the renewal process to help you prepare and position yourself for success.