Americans learned just how vital the trucking industry is to daily life during the early days of the COVID-19 pandemic (source 1). Truck drivers all across the country witnessed an outpouring of public recognition and gratitude as the nation coped with shipping delays and supply shortages (source 1). As the economy works to recover, trucking will continue to play an essential role, making it more important than ever that trucking companies protect business operations. Often overlooked, occupational accident insurance should be a key component of any trucking company’s risk management program.

Will premiums increase? Are terms and conditions changing? What lines of business have limited markets? Which lines of business have excess capacity? Here’s what clients can expect in the marketplace for 2021 in a quick and easy to read reference guide.

The REDY Index leverages CRC Group’s collection of actionable data – the wholesale industry’s largest. It provides critical pricing analysis monthly, giving you a snapshot of the marketplace. The REDY Index generates instant intelligence on pricing trends by industry or coverage, enabling our retail partners to set accurate data- driven expectations with their clients. Removing the guesswork empowers CRC team members to negotiate competitively, consistently producing better outcomes, better deliverables, and better results.

The road ahead may be opening up in the primary auto market after last year’s nationwide economic dislocation brought on by the pandemic. The trucking industry, in particular, endured months of turmoil amid massive shifts in demand as people nationwide began not only working from home—but also staying at home after work. In commercial auto, the shutdown-induced reduction in traffic congestion may have brought a decline in accident frequency. That would be welcome news for insurers in a market where the combined ratio overall has remained above 100 for a decade. (source vi)

2020 was packed with the kind of events that spark claim lawsuits, including the COVID-19 pandemic and subsequent lockdowns that depressed the economy, stressed healthcare systems, and drained both personal and business funds. Last year also saw an increase in cyberattacks, multiple hurricanes, and other disasters that have helped to solidify a hard insurance market for many lines.

While the COVID-19 pandemic offered new challenges, the healthcare market was already primed to be tough in 2021. After more than 10 years of a soft market and deteriorating results, it started to turn in the latter half of 2019. Launching into the new year, significant rate and retention increases, lower limits, and more policy movement toward claims made, was expected. However, the coronavirus amplified all of these issues, and while market adjustments were sorely needed, it remains unclear how long it will take to bring the business back to profitability.

Excessive fee litigation originally began to emerge in the early 2000s, and has now reached an all-time high.

Rapid spread of the coronavirus required social distancing and caused temporary closure of popular tourist sites around the world. As destinations reopen and some rescheduled travel plans, home-sharing is once again a viable option for resuming travel while staying outside crowded areas.

Commercial trucking often serves as a trusted barometer for the U.S. economy. In 2019, America’s truckers carried 11.84 billion tons of freight and generated $791.7 billion in revenue*.

The REDY Index leverages CRC Group’s collection of actionable data – the wholesale industry’s largest. It provides critical pricing analysis monthly, giving you a snapshot of the marketplace. The REDY Index generates instant intelligence on pricing trends by industry or coverage, enabling our retail partners to set accurate data- driven expectations with their clients. Removing the guesswork empowers CRC team members to negotiate competitively, consistently producing better outcomes, better deliverables, and better results.

The CRC Claims Advocacy Team recently came to the rescue of a retail agency partner. They stepped in to help with a contentious builder’s risk claim that involved delay and damage to an office building project that occurred over a 7-8 month period due to rain, flooding, and a hurricane. The source of the water damage impacted both the coverage analysis and the number of deductibles that should apply. In this instance, the insured believed there was only one claim and one deductible, while the carrier sought to apply three.

While COVID-19 offered new challenges, the healthcare market was already primed to be tough in 2021. After more than 10 years of a soft market and deteriorating results, significant rate and retention increases, lower limits, and more policy movement toward claims made, was expected. As healthcare segments react to these changes, E&S experts are keeping a close eye on current market conditions and emerging concerns with the potential to impact the market.

The market for real estate casualty coverage is tightening significantly both for primary and excess with fewer standard markets willing to provide coverage. Rates, retentions and deductibles are all heading higher as claims costs and jury verdicts rise, particularly for habitability claims in California and action-over claims in New York City. To avoid those kinds of claims, underwriters are putting much greater scrutiny on submissions, particularly in litigation-prone areas. In such a fluid market, communication ahead of renewals is critical to manage client expectations. As placements become more challenging, working with experienced wholesale brokers is the key to finding the best coverage options.

The REDY Index leverages CRC Group’s collection of actionable data – the wholesale industry’s largest. It provides critical pricing analysis on a monthly basis giving you a snapshot of the marketplace. The REDY Index generates instant intelligence on pricing trends by industry or coverage, enabling our retail partners to set accurate data driven expectations with their clients. Removing the guesswork empowers CRC team members to negotiate competitively, consistently producing better outcomes, better deliverables, and better results.

The excess casualty market faces a rough road ahead. After a difficult 2020, the market is likely to remain hard at least through 2021 and possibly into the following year. Carriers continue to reduce limits and increase premiums as they grapple with the aftereffects of underpricing in the soft market. Much of the hardening is being driven by losses in auto, and also where social inflation is leading to more so-called ‘nuclear’ verdicts. Along with auto fleets, construction, real estate, habitational and hotels stand among the more difficult markets.