Nearly 80 percent of insurance coverage areas are expected to increase in cost and stricter underwriting in 2020, including commercial property, casualty, and automotive.
Contributing to property losses are natural catastrophes such as floods, wildfires, tornadoes, hail and more. Meanwhile, commercial auto accident occurrences are increasing in both frequency and severity. The causes include distracted, impaired, aggressive and inexperienced drivers. The result has been higher legal fees and larger settlement payouts. Without the support of expert industry specialists and consultants, you may end up having to assume some of the risk yourself in these areas in order to minimize the rate increases. Additionally, “social inflation” has once again become a leading concern of insurance company executives, creating an inability to adequately price many liability coverages.
On a more positive note, one of the areas showing flat existence is workers’ compensation. The balance exists because even though medical cost continue to escalate, workplace injuries continue to decline.
You can start now to work with your broker on ways to improve your coverage and rates in 2020:
- Introduce advanced analytics to improve information quality.
- Pursue rate reductions in areas where you’ve experienced favorable loss rates.
- Identify areas where your needs have changed and adjust your coverage likewise.
- Find compatible insurance providers who can extend the right level of protection based on your business and financial needs.
- Have a risk mitigation plan in place in case you experience losses.
- Offer driver safety and telematics solutions that can further reduce commercial auto rates.
When you turn to Holman Insurance Services for support, you have access to solutions that combine the most relevant capabilities of our Holman Enterprises automotive and risk mitigation companies. Contact your Holman Insurance Services specialist at any time to talk about your specific commercial insurance concerns.