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8. Property insurance market hardening set to continue

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8. Property insurance market hardening set to continue

Most commercial insurance lines experienced a combination of rate hikes and capacity cutbacks this year as the hardening across markets continued to accelerate.

A story the first week of January predicting this trend was the eighth most read story on Business Insurance’s website in 2020.

The increases gained momentum in the first quarter as virtually all lines except workers compensation saw rate increases.

Rates continued upward in the third quarter, with some lines seeing mid- to high double-digit rate hikes as capacity withdrawals continued and underwriting standards tightened further amid the COVID-19 pandemic and resulting restrictions.

Capacity reductions, rate increases and tighter underwriting standards continued into the fourth quarter. Some lines, such as umbrella and excess coverage, still saw double-digit increases with capacity substantially reduced.

The hardening market is expected to extend into 2021 as rates continue to climb and capacity continues to shrink. Buyers are also likely to see higher attachment points and deductibles, and more exclusions, particularly for pandemics and communicable diseases.

No. 9 most read story.