Look for These 3 Traits in an Insurer to Tackle Complex Liability Risks
Challenges in the liability insurance market are well known. To start, loss severity is up, driven by a confluence of factors. In the property world, natural catastrophes and increasing cost of materials are driving up claim values. In the realm of personal injury risk and auto liability, rising costs of medical care and vehicle repairs are exacerbated by the effects of social inflation and a generally litigious environment.
“When you combine the rising loss trend with years of underpriced coverage, especially for long-tail liability lines, and then factor in the current low interest rate environment, all of this leads to tighter underwriting discipline,” said Mike Low, Head of Complex Liability Solutions, The Hartford. “Terms and conditions are getting tighter, prices are up, and program structures are being reworked to include higher retentions.”
As a result, risk managers and risk professionals are finding it more and more difficult to find adequate coverage for complex risks at affordable premiums.
To get the best outcome for risks with higher-hazard exposures, then, here are three key characteristics risk professionals should be looking for in their liability carrier.
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