Insurance Market Conditions Mixed for Communications, Media, and Technology Sector
The property insurance market in 2015 further softened for communications, media, and technology (CMT) companies while the casualty market was mostly stable.
Large loss exposures and contingent time element coverage issues are key for CMT companies with large diverse supply chains. Exposure to large losses is increasing for insurers due to continued mergers and acquisitions activity, especially in the communications sector and among makers of software and hardware.
Many CMT companies experienced modest rate increases for errors and omissions (E&O) liability insurance, driven in part by rising cyber insurance rates.
- The property insurance market is likely to continue softening.
- Slight rate increases for E&O liability are likely.
- The impact of insurer consolidation within the directors’ and officers’ liability space remains unclear.
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