‘Cautiously optimistic’ outlook for management liability insurance
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Management and professional liability insurance markets appear to have turned a corner, and policyholders can be “cautiously optimistic” about their prospects for this year, says a report issued Tuesday.
These markets are “tough but stable,” says Manny Cho, executive vice president, executive lines, at Risk Placement Services, Arthur J. Gallagher & Co.’s wholesale unit, in the report issued by RPS.
While “capacity and limits may continue to tighten, it won’t be to the same degree that we saw during the height of COVID,” said Mr. Cho in the report, 2022 Management and Professional Liability Market Outlook.
The report says, however, there is still uncertainty about COVID-19 policy terms and conditions, with about 4,500 pandemic-related, class-action lawsuits having been filed between January 2020 and mid-February 2022, with more than one-quarter of these California-based.
The report says insureds that are good risks can anticipate rate increases in the 5% to 10% range this year, but restrictive policy limits will continue, with $5 million the most insurers will offer for most coverage lines.
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