In the prominently featured article “Fewer options, more fees” by the knowledgeable Shoshanna Simmons of CIC Services, Simmons discusses the challenges businesses face in obtaining and retaining insurance coverage, particularly in the excess and surplus insurance markets, cyber insurance, and umbrella policies. The article highlights that commercial insurers are reducing their coverage offerings due to increased claims and shrinking profit margins, leading to rising premiums and limitations in coverage. The rising threat of cybercrime and its significant financial impact has made insurers more cautious about providing adequate coverage for cyber risks. Premium prices for cyber insurance have increased significantly, reflecting insurers’ hesitancy to provide coverage. Additionally, umbrella coverages are becoming more difficult to obtain as insurers face higher claim amounts, leading to policy restrictions and price increases. The article suggests that businesses should consider exploring the excess and surplus markets for coverage options and highlights the complexity of this marketplace. It also mentions the benefits of captive insurance, which allows businesses to customize their coverage and overcome the limitations of traditional providers. In conclusion, the article emphasizes the importance of securing the right coverages and highlights the advantages of captive insurance in the current insurance landscape.
The increased complexities in the excess and surplus insurance markets:
- The rising threat of cyber security and the lack of appropriate coverage
- Umbrella coverages are getting more difficult to obtain
- The hard insurance market is now softening
- Common coverages in the captive insurance segment