Premium renewal rates for nearly all major commercial insurance lines continued to increase year over year during the first quarter of 2022, according to the "IVANS Index," a regular premium renewal rate index compiled by the IVANS insurance exchange service.
The number of claims that have attorney involvement at first notice of loss continues to grow, according to a new report from Sedgwick, while litigation rates and costs continue to rise. Meanwhile, social inflation and other factors continue to increase the severity and frequency of litigation.
The rise in cyber incidents has led to cyber insurance becoming the fastest-growing product segment in the US property-casualty insurance market, according to Fitch Ratings. The rating agency estimated that stand-alone and packaged statutory cyber-insurance direct written premiums increased by 74 percent in 2021 to nearly $5 billion.
The rapid increase in vehicle automation along with a growing reliance on internet-connected technologies in critical operations are increasing cyber risks associated with vehicles, according to a recent briefing from Guy Carpenter. The new technology creates emerging cyber risks for those using the roads, Guy Carpenter said.
Deterioration in the cyber-insurance market has made captive insurance an option organizations should include in their approaches to financing cyber risks, according to Aon. Using captives to finance those exposures allows organizations to replace overly expensive insurer capital with organizational capital while focusing the risk transfer budget on volatility.