Generally Soft Insurance Market for Chemical Companies Expected to Continue in 2016
Insureds in the chemical sector generally benefited from favorable insurance conditions in the fourth quarter of 2015 and are expected to do so again in 2016, barring unforeseen changes in conditions. Chemical companies with good loss histories, solid financials, and best-in-class operations were typically able to secure competitive terms. Companies with less favorable loss profiles often found insurers to be more aggressive on rates and closely monitoring deductible levels.
The aggressive stance for business by newer market entrants offset the effects of some insurer consolidations in 2015. Insurers generally offered more capacity to better-rated risks and/or companies with thorough underwriting submissions that included detailed engineering reports and loss information.
Among the trends expected to continue in 2016:
- Underwriters are seeking detailed submissions, including critical engineering information.
- Excess casualty capacity is expected to grow.
- Greater awareness of product restrictions in environmental policies.
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