2020 was a year unlike any other. A pandemic, domestic civil unrest, economic uncertainty, new norms, an election cycle and a multitude of weather and climate disaster events with losses exceeding $1 billion have all changed the way we live, work, conduct business and interact with each other. In short, 2020 was a year of massive upheaval across society.

Like many other sectors of the economy, the commercial insurance industry is experiencing changes to both its market cycles and its operating procedures. In particular, 2020 brought an acceleration of a hardening insurance marketplace—one that is less friendly to insurance buyers—which is now nearly two years old. Capacity has left the market, reinsurance has become more expensive, underwriting has gotten stricter and, most importantly, premiums are on the rise for nearly every line of insurance.

While the effects of this hardening insurance market on your business will depend on a variety of factors, many businesses will see premium increases for their insurance coverage in 2021. In fact, for some lines of insurance, businesses may see double-digit rate increases at their next renewal.

Our 2021 P&C Market Outlook examines trends influencing the commercial insurance space and how these trends impact policyholders.