Creativity holds the key to placing risks in the difficult market for dealer open lot coverage. Capacity remains very tight as some markets have exited altogether while the remaining ones are generally willing to offer only smaller limits. Few excess and surplus carriers are showing an appetite for the risk. Out of necessity, many auto dealers are taking lower limits and higher deductibles to fit coverage within their budgets. It’s a market where experienced brokers really make a difference.

The 2021 wildfire season is predicted to be the fifth consecutive year in a pattern of severe fire seasons. Wildfire threats emerged early this year as 98% percent of land in the Western states continues to experience drought conditions compounded by early summer heatwaves.

Anytime an area is hit with a catastrophic event, like a hurricane or wildfire, the cost of labor and building materials temporarily rises due to increased demand as communities and businesses rebuild. 2020 brought a total of 63 catastrophic events including Midwestern tornadoes, Western wildfires, and Southeastern hurricanes on top of the COVID-19 pandemic - a catastrophic event unlike any in recent history.

The COVID-19 pandemic resulted in decreased energy production and demand in 2020. According to the U.S. Energy Information Administration (EIA), it will likely take years for the U.S. to return to 2019 levels of consumption. While it’s anticipated that the United States will continue to export more energy than it imports through 2050, recovery will take time and the energy insurance market is feeling the pinch (source 1).

As the aviation industry rebounds from a massive pandemic-induced downturn, aviation insurance rates are rising as insurers seek to address prior-year losses and the industry’s evolving risks. Interest in private jet purchases and rentals have surged as more business fliers and individuals avoid public carriers for health reasons. The pandemic has also provided an extra boost to the rapidly growing unmanned aerial vehicle industry since camera-equipped drones can perform many tasks at lower risk and without personal contact.