| Coverage | Trend | Range |
|---|---|---|
| Property |
|
+5% to +10% |
| Workers' compensation |
|
-3% to +5% |
| Auto liability |
|
+10% to +20% |
| General liability (non-products/professional) |
|
Flat to +10% |
| UMB |
|
+10% to +20% |
| Products/professional |
|
-5% to +5% |
Key takeaways
- With AI central to R&D, clinical trials and regulatory workflows, carrier markets are quickly adapting policy structures around digital risk. This shift has shown an increase in costs surrounding certain coverages as the industry migrates through unknown litigation waters.
- Social inflation, nuclear verdicts and litigation funding continue to drive overall claims costs. Changing legal tactics are likely to continue, which puts pressure on both available market capacity and future rate stability.
- Geopolitical events around the world have led to instability in supply chains that are crucial to the life sciences industry, especially within the manufacturing and distribution markets.
We continue to see new carriers entering the life sciences market, particularly in the excess layers, which is adding capacity and helping maintain competitive conditions, while carriers continue to maintain disciplined underwriting. At the same time, insurers remain focused on claims severity, including social inflation, litigation funding and larger liability awards, which could influence underwriting and pricing going forward.
With rate momentum slowing due to economic pressures, and an influx of carrier capacity, we expect continued competition in the marketplace. Rates are largely dependent on individual risks, with single digit rate decreases readily available for well-managed risks that have forecasted increased exposures. Incumbent markets remain diligent towards working to retain their business but are taking a heightened review of shifting industry and litigation trends.
Disclaimer
WTW hopes you found the general information provided here informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, WTW offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).
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