A GREATER SHARE OF THE RISK: When a catastrophe such as a hurricane or earthquakes strikes a wide area, the insured losses can easily add up to the billions of dollars. As property values have risen over the years, so have insurers’ catastrophe losses. To limit their own risks, carriers are more often requiring property owners to retain a greater share of the exposure through percentage deductibles based on the overall value of the property at risk, rather than flat deductibles set at a specific monetary value. While percentage deductibles can leave insureds facing much higher losses, there are strategies brokers can use to help lessen the impact.

Internet-based crime shows no sign of letting up. According to the FBI’s Internet Crime Complaint Center, 2019 saw both the highest number of cybercrime complaints and the biggest monetary losses reported since the center’s establishment in 2000. The FBI received an average of almost 1,300 complaints each day and documented more than $3.5 billion in losses for individual and business victims.

The total number of Registered Investment Advisors has not declined in a single year over the past decade. There are more than 30,000 Registered Investment Advisors with the SEC or at the state level and two-thirds have less than $100M in Assets Under Management (AUM).* As with any growing segment of business, the risks associated are on the rise. Insurisk’s FLIP product has been specifically designed to meet the unique insurance needs of Investment Advisors, featuring a proprietary endorsement.

Fifteen years into the soft market cycle, it shouldn’t come as a surprise that the Medical Professional Liability (MPL) market is turning around. Many will remember that the Long-Term Care (LTC) market began to show signs of hardening in 2017, and the Hospital segment began to follow suit in the second quarter of 2019. While the Facilities and Physician segments have lagged behind, they’re also turning the corner toward a firmer market. While the COVID-19 pandemic is to blame for many current challenges, this hard market was well on its way prior to the pandemic. In actuality, the battle against COVID-19 has functioned in many ways as a temporary pause button for the MPL marketplace, giving insureds a short period of respite due to moratoriums on litigation. However, significant market changes are anticipated for the remainder of the year and beyond. Understanding the 5 primary drivers of the tightening market can be important to helping clients comprehend the changes that are coming.

Everyone knows the fine print matters, but it is especially important when it comes to the additional insured endorsements sometimes requested by partners. Clauses requiring such endorsements can be expensive in ways insureds may not realize. Understanding the hidden costs of an additional insured endorsement can keep an insured from unfairly paying for another’s mistakes or unintentionally elevating insurance costs. Contractual provisions requiring additional insured endorsements can vary, and the differences can make a world of difference.