Laserfiche WebLink
Indian River County Board of County Commissioners ®# Gallagher <br />•• CORE 360 <br />General Liability <br />Where we were: 2021 <br />• The economic shutdown was responsible for a decline in claim frequency during 2020. <br />• Because primary General Liability's policy limits have not changed in 25+ years, carriers remained <br />largely insulated from the severity trends (largely social inflation) associated with some of the other <br />lines of insurance, such as D&O, Auto, Umbrella/ Excess, etc. <br />General Liability Rate Trends 2020-2021 <br />13.3% <br />12_0'% <br />R.1i: <br />Too.% <br />8_0% <br />6,0% <br />4.a% <br />4.3% <br />2.Vyyyy % <br />.00000 <br />0-0% <br />83.1% <br />S.C% 5.0% <br />2020 2020 2020 2620 2021 202I 2021 2,038 <br />01 02 03 04 01 {S2 03 04 <br />Source: Gait gher U.S. Own s <br />Q4 2021 GL Rate Changes <br />Gallagher — U.S. Clients <br />0 Decrease 0 Flat increase <br />5.0% <br />median rate change <br />in Q4 2021 <br />E Meclan Rasp Change ON 75Th R menb4 Rate Change <br />Where we are: What we're seeing now <br />• UmbrellalExcess carriers are asking for higher retentions and limits <br />in General Liability. In lieu of the traditional $1 million limit that has <br />been the norm for the past 30 years, carriers are now asking for <br />$2 million. The Umbrella/Excess market is driving this trend. <br />Where we're going: Trends we are watching <br />• Most policyholders will encounter rate increases but because the <br />primary General Liability limits have by and large remained <br />stagnant, the rate increases will likely remain in the single -digits. <br />• Expect to see more and more Umbrella/Excess carriers require <br />clients to put up $2 or $4 million in primary limits. <br />• If a carrier will not increase their primary limit, clients may have to <br />find an additional carrier to put up a buffer layer, adding frictional <br />costs. <br />EM <br />