Insurance Market Mostly Stable for Buyers in the Automotive and Manufacturing Sectors
Market conditions in 2015 were generally stable for insureds in the automotive and manufacturing sector and are expected to remain so in 2016, barring unforeseen developments.
Consistent with the overall property insurance market, buyers in the manufacturing and automotive sector generally experienced favorable renewals in the fourth quarter of 2015. Insurers continue to scrutinize terms and conditions for flood, storm surge, and contingent business interruption (CBI).
Conditions also remained generally soft in casualty lines, another trend expected to continue in 2016, barring unforeseen events.
While D&O rates were generally flat and are expected to remain flat in 2016 barring unforeseen circumstances, buyers with challenging loss profiles may see rate increases. Marine program rates were also generally flat.
Among the key risk trends to watch for in 2016:
- Motor carriers continue to experience a shortage of qualified drivers, due in part to growing federal safety regulations and long routes that often keep drivers away from home for long periods.
- Closer scrutiny is expected for automaker policies regarding “defeat devices.”
- The implications are continuing to play out following legal rulings regarding the status of truckers as independent contractors or employees.
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