Changing CPrL Marketplace: Expectations for 2021
Although the market has stayed competitive with over 30 insurers offering some form of CPrL insurance, rates are nonetheless expected to rise (albeit modestly) by 2 to 5 percent for the first time in over 10 years. Increases likely will be most prevalent for contractors involved in higher professional risk delivery methods such as design/build and engineering/procurement/construction. Those engaged in agency construction management methodologies could see rate hikes as well. Unlike in years past, construction firms are unlikely to see the increases waived based on their successful work histories or enhanced risk management practices.
What’s behind the changes? CPrL insurance has continually matured alongside the market’s understanding of the frequency and severity of claims produced by specific project delivery methods. In addition, the global insurance market has faced an ever-increasing number of losses across the property and casualty marketplace, with reinsurers absorbing most of the payouts. Even though CPrL policies haven’t been the primary drivers of loss, insurers who purchase reinsurance have not only been impacted by more restrictive terms and conditions but also by premium increases, which have been passed onto customers across all lines of business, including CPrL insurers. Read more.