A financial market that’s in correction territory, coronavirus pandemic fears and an insurance industry hard market for the first time in years. Are these issues related or becoming more so? What’s an insured to think right now?
The rapidly hardening insurance market is the result of several factors that can be summed up by saying that we’re paying today for our prior sins. The industry has had persistent high loss ratios since 2013, primarily caused by an increase in frequency of severe property and liability losses and spiraling litigation costs with ever higher jury awards.