2022 PC Market Outlook

2022 Commercial Property &
Casualty Market Outlook
Forecast Insights From USI

National Practice Leaders
This material is for informational purposes and is not intended to be exhaustive nor should any discussions or opinions be construed as legal advice. Contact your broker for
insurance advice, tax professional for tax advice, or legal counsel for legal advice regarding your particular situation. USI does not accept any responsibility for the content of the
information provided or for consequences of any actions taken on the basis of the information provided.
© 2022 USI Insurance Services. All rights reserved.
TABLE OF
CONTENT S
Executive Summary 03 Industry Updates 33
Market Update & Rate Forecast 04 Manufacturing & Distribution 34
Property 06 Real Estate 36
Casualty 09 Construction 37
International 15 Healthcare 39
Environmental 17 Public Entity & Higher Education 41
Aviation 20 Agriculture 44
Executive & Professional Risk 22 Life Sciences 47
USI Contributors 49
W ith 2022 underway, we are pleased to see an influx of new insurance carriers that have
helped expand overall capacity in the insurance market. Legacy markets, which have
been deploying capital and surplus to compete for new business in certain lines of coverage,
Cyber: Ransomware attacks continued to plague the cyber insurance market
throughout the second half of 2021. To mitigate their losses, insurance companies
are tightening the terms and availability of certain cyber coverages, especially for
are also increasing capacity. organizations that cannot demonstrate strong cyber risk controls and overall cyber
hygiene. We saw a surge in insurers’ probes into information security controls and
With the gradual market stabilization, some insureds should begin to see relief in 2022, as practices, which severely impacted buyers’ coverage when deemed “less optimal.” For
we discuss in more detail throughout this publication. Organizations that work closely with year-end 2021, network security and privacy (cyber) insurance rates increased 40% to
their brokers to improve their quality of risk will differentiate themselves to the insurance 50% for optimal risks, and 50% to 100%+ for less optimal risks (year over year). Good
marketplace and position themselves to receive favorable outcomes. cyber hygiene is critical to securing insurance quotes and limits.
Some insurance buyers, including ones in certain geographic areas, industries, and other Directors & officers (D&O): The overall public company D&O marketplace
risk categories, are exceptions to these positive trends and will continue to face enormous continued to stabilize due to a significant decrease in federal securities class actions
challenges. The supply chain crisis is expected to persist through 2022 as well, impacting (SCAs) in 2021 and the emergence of new capacity targeting excess layers of coverage.
virtually all organizations. It’s critically important for With some exceptions, moderate increases are the norm. Premium
organizations to leverage the best expertise and strategic and retention increases moderated for private company/not-for-profit
resources available to evaluate and improve their risk We saw a surge in insurers’ (NFP) D&O as well.
profiles. probes into information
Other lines of executive and professional insurance: The impact
In this Market Outlook, we take an in-depth look at major security controls and practices, of excessive-fee litigation dominated the fiduciary liability insurance
industries and discuss the most impactful trends in all which severely impacted conversation in 2021, and many insureds saw double-digit percentage
insurance lines. buyers’ coverage when increases in premiums in the second half of the year. For employment
Property: While market dynamics are still volatile for deemed ‘less optimal.’” practices liability (EPL), pricing increases moderated late in 2021, and
challenged geographic areas, we are seeing the market single-digit increases were achievable in the absence of a poor claims
stabilize overall — and this benefits commercial history or a major increase in exposure.
insurance buyers that maintain quality risks with strong data to back them up. While we continue to see costs increase in some coverage lines, the overall stabilization
General Liability: General and products liability rates, while increasing quarter
and improved capacity across the insurance market are reasons for optimism. As
over quarter, will be less severe than other casualty lines. We anticipate rates to increase noted in this market forecast, we anticipate that rates will flatten or even decrease for
between 5% and 10%, with a growing number of insureds experiencing flat to 5% some lines of coverage in 2022. Organizations that take advantage of the “How USI
increases as the year progresses. Can Help” sections in this report will be in the best position to capitalize on insurance
market opportunities going forward.
Auto: Commercial automobile liability coverage rates are starting to flatten out, due to
the reappearance of insurers that have been dormant, along with the entrance of new We wish you success and a happy new year!
telematics and usage-based insurers.
Excess: Umbrella/excess insurance continues to be the most adversely impacted Robert Meyers
casualty coverage line. The umbrella/excess market also continues to exhibit selective Senior Vice President,
deployment of capacity per individual insured. Property & Casualty Leader
USI Insurance Services
Workers’ Compensation: In most states, this line of insurance continues to perform
well for many insureds. The impact of COVID-19 claims has been far less than
anticipated, even in states that have enacted presumptive liability.
Forecast Insights | 2022 COMMERCIAL PROPERTY & CASUALTY MARKET OUTLOOK 3

M ARK E T UPDATE & R ATE FOREC A S T
Year-End Forecast
Product Line
2021 (YOY) 2022 (First Half)
PROPERTY
Property Non-Catastrophic w/Good Loss History Flat to up 10% Down 5% to up 5%
CAT Property w/Minimal Loss History Up 10% to 15%+ Up 5% to 10%+
CAT or Non-CAT Property w/Poor Loss History Up 20% + Up 15%+
CASUALTY
Primary General/Product Liability Up 10% to 20% Up 5% to 15%
Primary Auto Liability w/Fleet Less Than 200 & Good Loss History Flat to up 5%*^ Flat to up 5% *^
Primary Auto Liability w/Fleet Less Than 200 & Poor Loss History Up 20% to 30%+^ Up 20% to 30% +^
Primary Auto Liability w/Fleets in Excess of 200 Flat to up 5%*^ Flat to up 5% *^
Excess Auto Buffers Up 40%+ Up 40%+

Workers’ Compensation Guaranteed Cost Down 10% to up 10%** Down 5% to up 5%**
Workers’ Compensation Loss Sensitive Flat to up 5%** Flat to up 5%**

Umbrella & Excess Liability (Middle Market) Up 5% to 25%*** Up 5% to up 15%***
Umbrella & Excess Liability (Risk Management) Up 25% to 50%+*** Up 10% to 35%+***
Medical Malpractice Up 10% to 35% Up 5% to 20%
INTERNATIONAL
International Liability Flat Flat
International Property, CAT Exposure Up 25% Up 25%
International Property, Non-CAT Exposure Flat Flat
*Including need for primary limits up to $2 million. Continued on next page

**Dependent on state and longer-term impact of COVID-19 presumptive liability rules.
***In some cases, depending on class of business and limits purchased. Factors in contraction in limits.
^Geographical radius of operations will impact pricing.
M ARK E T UPDATE & R ATE FOREC A S T
Year-End Forecast
Product Line
2021 (YOY) 2022 (First Half)
ENVIRONMENTAL
Environmental Combined General Liability/Pollution 5% to 15% 5% to 15%
Excess Combined General Liability/Pollution 5% to 20% 7.5% to 15%
Environmental Contractors’ Pollution 10% reduction to flat 10% reduction to inflationary increase
Environmental Pollution Legal Liability Flat to inflationary increase Flat to 5% increase

AVIATION
Aviation Up 15% to 25% Up 10% to 20%
EXECUTIVE & PROFESSIONAL RISK (EPS)

Public Company Directors & Officers (D&O) Down 5% to up 25% Primary: Flat to +20%
Excess: Down 10% to up 10%
Total: Down 5% to up 15%
Private Company and Not-For-Profit (NFP) Up 5% to 25% Flat to up 20%
Employment Practices Liability (EPL) Up 5% to 20% Up 5% to 20%
Fiduciary Up 10% to 100% Up 10% to 100%

Crime Up 5% to 15% Flat to up 15%
Professional Liability/Errors & Omissions (E&O) Up 10% to 50% Up 10% to 35%
Network Security & Privacy (Cyber) 40% to 50% for optimal risks 40% to 50% for optimal risks
50% to 100%+ for less optimal risks 50% to 100%+ for less optimal risks
Technology E&O 35% to 50% for optimal risks 40% to 50% for optimal risks
50% to 100%+ for less optimal risks 50% to 100%+ for less optimal risks
Representations & Warranties Up 20% to 30% Flat to down 15%
Kidnap & Ransom Flat to up 10% Flat to up 10%
View our Historical Rate Index charts

PROPER T Y
Year-End 2021 Forecast 2022 Anticipated Market Trends for 2022

Product Line (YOY) (First Half)
Property Non-Catastrophic w/Good Loss History Flat to up 10% Down 5% to up 5% In the first half of 2022, the rate and deductible adjustments seen since 2019 will
create opportunities for carrier profitability, especially for lower hazard occupancies
CAT Property w/Minimal Loss History Up 10% to 15%+ Up 5% to 10%+
and non-catastrophic (CAT) regions. The current environment and opportunity to
CAT or Non-CAT Property w/Poor Loss History Up 20% + Up 15%+ shrink CAT portfolios will create competition among carriers trying to attain their
2022 premium growth targets. This, combined with a slowing impact of COVID-19
View our Historical Rate Index charts and strong investment opportunities, allows carriers to be aggressive on quality risk
with quality data.
Highlights/Changes Since Second Quarter 2021
Challenged Exposures
As we discussed in our 2021 Mid-Year Commercial Property & Casualty Market
Outlook, quality risks continue to receive the benefit of a stabilizing market. Market Coastal
dynamics are still volatile for challenged geographic areas in the U.S., including
southern coastal counties and wildfire zones in the West. Hurricane Ida, for example, Exposure - Over the past five years, hurricane season in the U.S. has produced 100
caused extensive damage in Louisiana in August 2021, after which it took a path named storms as compared to 67 over the previous five years. In 2022, these events
northeast, triggering an estimated $20 billion in damage from flooding. will continue to impact loss ratios for carriers that offer capacity in exposed regions.
Carriers have responded with drastically reduced capacity offerings, increased rates,
Reinsurers are closely watching the development of 2021 losses as they negotiate 2022
and increased deductibles for named storms.
reinsurance renewals. Hard-hit regions will continue to see unpredictable increases
based mostly on extreme challenges in capacity supply and demand.

USI’s Response - It is imperative for property owners to know the loss-estimate results of Flood
their modeled portfolio. CAT modeling represents a significant part of the aggregation
analysis used by carriers and determines pricing for individual risks. Carriers place Exposure - River and flash flood occurrences continue to impact areas throughout the
considerable weight on modeling results when delineating pricing and governing U. S., many of which were not in a flood zone designated by the Federal Emergency
capacity for named windstorms. USI’s modeling capabilities include analytics around Management Agency (FEMA). Many businesses declined to purchase flood coverage
perils to include a named windstorm, wind/hail, earthquake, flood, and wildfire. and sustained damage in unforeseen flood events.
Wildfire USI’s Response - Property owners should know their flood zone and applicable flood
limits before a loss occurs. USI works closely with our clients to triangulate flood
Exposure - Securing capacity for wildfire is extremely challenging in the current zones and recommend appropriate flood limits for areas that could be susceptible to a
property market. In recent years, we have seen numerous large wildfire events impact flood event. In addition, we work with our partner carriers to ensure that coverage and
western states, resulting in billions of dollars of insured damage. Many markets are deductibles remain unchanged if flood zones change during the policy period.
withdrawing from offering fire capacity in areas with high wildfire risk scores. Those
carriers that remain have severely reduced wildfire capacity and significantly increased
pricing for the exposure capacity in exposed regions. Carriers have responded with Challenged Occupancies
drastically reduced capacity offerings, increased rates, and increased deductibles for
named storms. Habitational
The frequency and severity of losses persist for habitational risks. In our Mid-Year 2021
USI’s Response - To determine actual exposures, USI accesses various data points to Market Outlook, we discussed Winter Storm Uri, a deep freeze event that struck Texas
verify wildfire risk scores and will also conduct modeling. To improve risk quality and surrounding states in February. Habitational accounts sustained very large losses
and make a positive impact on carrier interest, our Risk Control team works with because of the storm, which are contributing to an already poor overall loss history. The
clients on hardscaping strategies, brush-control impact, and roof cleaning and habitational occupancy faces continued capacity issues, as many accounts are based in
maintenance measures. challenging geographic areas. Those contending with fire and water damage losses will
see increasing pressure on rates and deductibles.
Wind/Hail
Exposure - According to the National Weather Service, the U.S. has experienced nearly USI’s Response - To secure capacity, it is necessary to clearly communicate risk qualities
10 significant severe thunderstorm outbreaks in each of the past three years. Carriers after a loss has occurred, so that carriers will understand the actions taken by the
continue to manage rooftop aggregate amounts in exposed geographies. In addition, property owner to prevent similar events in the future. Carriers need to understand
percentage deductible levels often equal full roof replacement, providing limited or no current and future capital expenditure plans and how those plans can improve overall
coverage for a hail event. As events have become more widespread, many geographies risk quality. Additionally, a well-thought-out tenant education program can positively
will be included in the higher deductible application. impact a carrier’s view of the property owner’s risk.
Wood Products
USI’s Response - USI can help property owners understand their modeled risk and
deductible application. Deductible buydown options are available to reduce the As large fire events prompt carriers to exit the market, this occupancy tends to be
financial impact of a large event and high deductible. USI’s Risk Control team can unfairly categorized and treated as if all risks are the same. Quality risk features like
provide a cost/benefit analysis related to the repair or replacement of a roof. fire protection, accurate construction details, and operational control information can
impact the differentiation of risk and improve carrier appetite.

USI’s Response - USI’s Risk Control group works closely with woodworking clients considerations involve property captives and parametric products.
to ensure that quality risk features are identified and communicated to the property USI’s Response - The unpredictability of property losses, especially as it relates to large
market. The group can also provide a cost/benefit analysis on risk improvements and CAT events, makes it challenging to move to a property captive. USI clients utilizing
the impact on capacity and premium. captive capacity typically employ the captive at the deductible level. Captives allow
buyers to include coverage for uninsurable exposures like the impact of a future
Food Manufacturing pandemic.
The impact of fire loss frequency and severity has resulted in a reduction of capacity Parametric product discussions are prevalent for clients in CAT areas and are applied
and limited markets that are willing to entertain this occupancy. Carriers perceive the most often to protect against sizeable percentage deductibles. These products can
industry as low-margin and high-volume, with limited capital to maintain electrical address many different exposures, including named windstorm, earthquake, flood, and
systems, machinery and equipment, and fire protection systems. It is not uncommon wildfire. In addition, some carriers are offering coverage to protect against the financial
for a small fire in a food processing facility to result in a total loss of inventory and impact of future pandemics. The take-up rate on these products remains relatively low.
goods in process.
USI’s Response - Our risk control resources are well-versed in the food industry How USI Can Help
(much like they are in the woodworking industry), and in the application of
procedures and protection features that can dramatically improve the risk for carriers. As the hard market moderates, buyers must work closely with their brokers to
Conveying a strong story around risk mitigation strategies and risk control tactics accurately determine their exposures, doing so analytically, and accurately portray and
allows us to introduce carriers that may not have otherwise considered a food communicate their quality of risk.
manufacturing operation. Our goal is to help our clients secure the most capital-efficient property renewal by:
Recycling Ensuring they have an audience with key property carriers.
When fires occur, this loss-leading industry also contributes to large environmental Maximizing the engagement and impact of risk control and our analytical tools.
losses. The industry is challenged by the age of facilities and limited protection features,
and geography exposures can make this a very difficult class for carriers. Single carrier Exploring options to create or access captive capacity.
solutions remain quite limited and therefore drive costs upward when a shared and Exploring parametric structures for high-risk areas.
layered structure is required.
Establishing and agreeing to the expected timing for their renewal.
USI’s Response - Risk differentiation is imperative for the recycling industry.
Communicating effective safety, protection, and operational controls to carriers allows For additional information, contact your USI representative or email us at
for an improved outcome. We recommend risk control engagement to gather and [email protected].
assess needed information, and to make risk improvement suggestions, which are then
conveyed to carriers that review specific locations.
Alternative Structures
Following the market increases and impact of higher deductibles, many clients
are interested in alternative ways to deal with this hard property market. Most

C A SUALT Y
Year-End 2021 Forecast 2022

Product Line (YOY) (First Half) Highlights/Changes Since Second Quarter 2021
Primary General/Product Liability Up 10% to 20% Up 5% to 15%
General/Products Liability and Umbrella/Excess Liability
Primary Auto Liability w/Fleet Less Than 200 Flat to up 5% *^ Flat to up 5% *^
& Good Loss History The third and fourth quarters of 2021 remained a challenging market for most buyers
Primary Auto Liability w/Fleet Less Than 200 Up 20% to 30% +^ Up 20% to 30% +^ of general/products and umbrella/excess insurance, but we are beginning to see a
& Poor Loss History welcomed deceleration in rate increases and more competition for new business for a
Primary Auto Liability w/Fleets in Excess of Flat to up 5% *^ Flat to up 5% *^ broader number of insureds.
200
Excess Auto Buffers Up 40%+ Up 40%+ Three to four years of consistent double-digit rate increases are beginning to create
a profitable environment for most casualty insurers. Rate adequacy has favorably
Workers’ Compensation Guaranteed Cost Down 10% to up 10%** Down 5% to up
5%**
impacted the combined ratio for casualty related lines, and overall industry surplus
now sits at more than $950 billion and growing. As a result, although rates continued
Workers’ Compensation Loss Sensitive Flat to up 5% ** Flat to up 5%**
to increase during the third and fourth quarters of 2021, the pace is moderating, which
Umbrella & Excess Liability (Middle Market) Up 5% to 25%*** Up 5% to up 15%*** should lead to longer-term rate stabilization.
Umbrella & Excess Liability (Risk Up 25% to 50% +*** Up 10% to 35%+***
Umbrella/excess insurance continues to be the most adversely impacted casualty
Management)
coverage line. In the first two quarters of 2021, this was no exception. For middle-
Medical Malpractice Up 10% to 35% Up 5% to 20%
market insureds that purchased $50 million or less in total limits, average rate increases
*Including need for primary limits up to $2 million. of 10% to 25% were the norm. Sufficient capacity was available throughout towers
**Dependent on state and longer-term impact of COVID-19 presumptive liability rules. of this size, although markets in excess liability layers continued requiring high rates
***In some cases, depending on class of business and limits purchased. Factors in contraction in limits.
^Geographical radius of operations will impact pricing. online. Insureds that purchased greater than $50 million in limits experienced higher
average rate increases of 25% to 35%.

Structuring competitively priced programs for which multiple insurers are required Anticipated Market Trends for 2022
to fill out the tower remains a challenge, especially for insureds with adverse prior loss
experience or that are in industry classifications perceived to be hazardous. In some General/Products Liability, Umbrella/Excess, Workers Compensation and
cases, these insureds have experienced rate increases greater than 35%. Commercial Auto Liability
The umbrella/excess market also continues to exhibit selective deployment of capacity Although rate increases are moderating for general/products and umbrella/excess
per individual insured. Quota sharing of capacity is becoming more common in lower liability lines, the market continues to be characterized by sustained underwriting
layers as markets maintain lower maximum deployment of limits for many clients, no discipline. This includes the need for greater deductible levels or underlying
greater than $5 million to $10 million per insured. Coverage, terms and conditions attachment points before risk transfer incepts, reduced capacity provided by insurers,
remain restrictive to keep the insurer from being brought into protracted and costly and non-negotiable coverage terms and conditions for most insureds.
litigation. We are seeing explicit non-negotiable exclusions required on almost every
account, including communicable disease. The headwinds of social inflation pressures remain as strong as ever, including the
frequency of large awards and an aggressive and well-financed plaintiffs’ bar. Combined
Additionally, leading umbrella markets continue to require higher underlying primary with rising reinsurance rates, this trend continues to impact underwriters’ perception
attachment points on an increasing number of insureds with fleets of 100 or more, of rate adequacy and underwriting profitability.
including minimum primary automobile liability limits of $2 million and in some cases
$5 million. Primary general liability underlying limits of 2/4/4 are becoming more New market entrants are adding capacity, and legacy markets are beginning to deploy
common as well. The need for higher underlying limits is triggering primary markets surplus capital to compete for new accounts, albeit slowly. We are seeing that an
and buffer markets to increase costs. increasing number of markets are more willing to negotiate on price rather than walk
away from what they believe are unprofitable accounts. This trend will further foster
Workers’ Compensation rate stabilization.
Workers’ compensation continues to perform well for many insureds in most states, For general/products and umbrella/excess liability lines, an increasing number of
and the combined ratio remains below 90%. The short-term impact of presumptive insureds will experience less severe renewal rate increases and potentially some flat
liability for COVID-19 claims was not nearly as high as expected, and the longer-term renewals, which will be a welcome result after years of costly rate increases. Selective
impact is expected to be muted as more workers are vaccinated and a work-from-home competition for premium dollars should continue to emerge and further stabilize
environment remains common for a greater number of employees. the market. However, we do not project an environment where flat renewals or rate
reductions are more common until at least early-to-mid 2023.
For guaranteed cost buyers, we have seen a competitive premium environment with
mid-single-digit reductions depending on the state and classification of business. Primary General & Products Liability
In certain higher cost states, we are seeing rate increases upwards of 5% to 10%. For
clients on loss-sensitive programs, the majority experienced flat renewals as rates have The magnitude of general and products liability rates, while increasing quarter over
bottomed out for many buyers. quarter, will be less severe than other casualty lines. Some of this is attributed to
insureds assuming more risk through higher deductibles or self-insured retention
In circumstances where clients are experiencing greater loss severity or where clients (SIR), while a good portion is due to rate adequacy being achieved for many insureds,
have a real need for premium savings, the market is reacting with a need for increased with exceptions for certain classes of business in perceived hazardous industries or
retention levels. An increasing number of markets are looking to package workers’ risks with a prior loss history. We anticipate rates to increase between 5% and
compensation with the liability lines when writing coverage, and many insurers refuse 10%, with a growing number of insureds experiencing flat to 5% increases as the
to write liability-only without adding workers’ compensation. year progresses.

Umbrella/Excess Liability
Competition is required to positively offset rate increases and ultimately create flat
renewals or rate decreases. Throughout 2022, we expect competition for market share
to emerge slowly and strategically for targeted customers with proven loss control and
litigation procedures.
New capacity continues to enter the market, and some of the legacy markets in the U.S.
are beginning to show signs of increased interest in accounts to deploy their capital
and surplus and compete for new business. We anticipate increased competition for
market share, which will further moderate rate increases. This gradual stabilization The $260 million in incurred workers’ compensation losses is substantially lower than
should result in low single-digit increases and even flat renewals for an increasing the $1 billion projected at the beginning of the pandemic. As vaccination rates increase,
number of insureds, especially well-performing accounts with robust risk management the impact of COVID-19 should further diminish.
and safety programs.
A continued decline in claim frequency and an environment of overly conservative
Those buying limits of $25 million or less should experience less volatility than those reserving practices have also contributed to reserve redundancies, which are offset
purchasing more. However, we do not expect to see an environment of rate decreases somewhat by medical cost inflation. As a result, rate decreases are beginning to flatten
becoming the norm anytime in 2022. out in more states. Some states are witnessing rate increases, but these changes will not
result in any substantial impact to the market for workers’ compensation.
Workers’ Compensation
An increasing number of guaranteed cost buyers for workers’ compensation will
Workers’ compensation will continue to remain competitive for most insurance be facing slightly higher rates than in years past. Coupled with higher payroll and
buyers in 2022. Although still a profitable line overall for insurers, the combined ratio subsequently higher premium costs, these insureds must look to assume more risk as
for workers’ compensation rose from 85% in 2019 to 87% in 2020, per the National a means of offsetting the increased costs. For clients on loss-sensitive programs, we
Council on Compensation Insurance (NCCI).* When all the data is analyzed, the expect a continued environment of flat renewals, with exceptions for clients that have
ratio is expected to increase slightly for 2021. adverse loss experience greater than the deductible level.
The impact of COVID-19 claims on workers’ compensation has been far less than The cost/benefit analysis of paid loss deductible programs, self-insurance, group
anticipated, and these claims are not likely to have as material an impact on rates as captives, and other types of loss-sensitive programs should be evaluated thoroughly.
expected, even in states that have enacted presumptive liability. Per the NCCI, 75% of Insureds currently on a loss-sensitive program must consider assuming more losses
workers’-compensation-related COVID-19 claims are from healthcare workers and through higher retentions and vertical quota sharing layers of a tower.
other first responders. Additionally, the NCCI reported that over 45,000 workers filed
COVID-related claims in 2020, totaling $260 million in incurred losses. However,
most of these claims were very small and involved workers who were out of work for
only a few days or weeks.
Workers’ compensation continues to perform
well for many insureds in most states.”
*https://www.ncci.com/Articles/Pages/Insights-COVID-19-WorkersComp-What-We-Know-Now.aspx

advance. Discussions should consider reductions in capacity, corresponding rates
on a price-per-million basis and any exclusionary wordings such as those pertaining
to infectious disease or similar exclusions.
– Determine as early as possible the minimum underlying limits that the umbrella
markets are willing to attach over.
– Consider self-insuring above contractually required limits.
– Benchmark overall umbrella/excess limits purchased against peer groups to
validate total limits purchased.
Commercial Automobile Liability Developing a quality underwriting submission and differentiating the quality
of the risk profile from others, so it will stand out. Since markets continue to be
Commercial automobile liability coverage rates are starting to flatten out, due to the characterized by sustained underwriting discipline, it is important to:
reappearance of insurers that have been dormant, along with the entrance of new
telematics and usage-based insurers. Despite the pricing improvements, underwriters – Think critically about the risks that underwriters will be most concerned about
are still heavily scrutinizing these risks. and address them in the submission.
Insurers are exceptionally competitive and are heavily pursuing accounts that deploy – Differentiate the nature of the risk, a step that is more important than ever, and
the use of technology and intensely focus on safety. Fleets with an adverse risk profile clearly describe the qualities of the risk in carrier submissions. Risk quality comes
are still experiencing higher pricing, but can secure more favorable terms because in several forms, including loss control/safety, contractual risk management, risk
of increased deductibles, self-insured retentions (SIR), and alternative program mitigation and capital expenditures, and willingness to engage risk control and
structures. overall risk management philosophy.
Using data analytics to evaluate risk financing alternatives.
How USI Can Help Analyzing the cost/benefit of program structural changes, such as:
General/Products and Umbrella Liability – Performing a cost-benefit of assuming higher retention levels for buyers of
guaranteed cost or low deductible insurance programs.
Organizations should proactively work with their insurance brokers to identify
markets and program structure solutions to: – Including defense costs in the limit of liability where feasible.
– Aggregating all coverage lines including those that are traditionally not
Minimize or offset rate increases
aggregated, such as automobile liability.
Resolve reductions in capacity
– Amending umbrella/excess aggregate drop-down provisions.
Address restrictive coverage terms and conditions
– Having the insured or its captive take on a quota-share participation of the
Understanding and resolving these issues is vital to the ongoing success and umbrella/excess program tower.
profitability of any organization, especially in a challenging insurance market. Business
– Looking at structured approaches, such as swing plans in which the ultimate cost
leaders should prepare early, communicate often, and devise a plan of action that
is dependent upon losses.
includes innovative and practical solutions.
– Analyzing multiyear, single-limit policies.
USI recommends: – Considering the pricing impact of changing the policy trigger from “Occurrence”
Starting a dialogue with both incumbent and new markets at least 150 days in to “Claims Made” or “Occurrence Reported.”

Workers’ Compensation
To help achieve favorable results for their workers’ compensation renewals, USI suggests clients:
Continue maintaining a COVID-19 containment plan.
How USI
Monitor COVID-19-related workers’ compensation claims closely, and ensure applicable local, state, and federal health and
safety guidelines are being followed in the workplace to strengthen any rebuttable positions.
Can Help
Leverage proper loss and financial analytics to determine if a loss-sensitive program structure makes sense, as well as the
capacity of insureds to assume risk at various retention levels.
Ensure that payroll by classification codes is accurate, adjusted and monitored accordingly for repurposed employees,
employees working remotely, and/or for employers whose operations have changed. Accordingly, maintain separate payroll
records for the change in operations or the wages earned for employees whose duties/roles have changed.
Educate underwriters about any changes to the promotion of wellness and activities that protect workers from occupational
injury, as well as any changes made to claims-handling initiatives that may reduce claim duration.
Since state and federal regulation of gig workers varies significantly, clients should monitor the current and future utilization of
independent contractors continuously. This will help determine the impact on the workers’ compensation program structure,
costs, and losses should statutory law change to classify gig workers as employees and not independent contractors.
For additional information, contact your USI representative or email us at [email protected].

How USI Can Help
Commercial Automobile Liability
USI’s risk advisors take these vital steps when working with commercial automobile liability clients:
Preparing early for renewal, developing a plan of action, and dialoguing with both incumbent and new markets at least 150 days in advance.
Developing a quality underwriting submission that best expresses the risk characteristics of insureds.
Taking inventory of telematics tools and other safety initiatives insureds have invested in to reduce risk exposure and improve driving
behavior. This includes GPS and speed monitoring systems, interior and exterior cameras, and other technological loss prevention tools.
Reviewing applicable compliance, safety, and accountability (CSA) scores and taking corrective actions (i.e., motor carrier operations). The
CSA score, which is used to rate motor carriers in various categories such as unsafe driving, crash indicator, hours-of-service compliance, and
driver fitness, is a key underwriting consideration used by insurers to assess a company’s risk profile and determine coverage rates.
Determining early in the process the minimum underlying limits that umbrella markets are willing to attach above, and working with the
primary insurers or buffer markets accordingly.
Updating driver lists and safety protocols, providing complete analytics on loss history and exposure, and providing a data-rich submission
with clear underwriting goals from the clients’ perspective.
Reviewing alternative program structures to ensure the current structures are the most optimal from cashflow, retention level, cost, and
collateral perspectives.
For additional information, contact your USI representative or email us at [email protected].

INTERNATIONAL
Product Line Year-End 2021 Forecast 2022 elected to work remotely outside of their assigned country of work may find they
(YOY) (First Half) are not provided coverage for a work-related injury, because some insurers define
International Liability Flat Flat U.S. expatriates and TCNs as employees “hired or assigned” by their employer to
International Property, CAT Exposure Up 25% Up 25%
work outside of their country of hire.
International Property, Non-CAT Exposure Flat Flat Insurance carriers are still including communicable disease exclusions in their
foreign casualty and property coverages. These exclusions apply to local policies
View our Historical Rate Index charts in addition to master “difference in conditions” (DIC) policies. They are not only
being applied to certain classes of business, but have become standard in policy
Since the publication of our 2021 Mid-Year Market Outlook, the market remains forms. We have been successful in removing these exclusions in some cases.
impacted by the pandemic, social/civil commotion, and economic pressures. This Carriers are still requiring insureds to provide documentation related to their
instability has pervaded the market even though capacity remains abundant. With COVID-19 mitigation strategy.
interest rates expected to remain low, insurers are looking to maintain the rate increases
gained in 2020 and 2021 to keep premiums at current levels, while retaining profitable In countries where workers’ compensation is provided through a governmental
business and moving away from riskier exposures in 2022. social scheme, we have seen no change. The schemes continue to address sickness
and death related to COVID-19, as they would any other infectious disease.
Continued Impacts of COVID-19: Since travel is still somewhat restricted because of the pandemic, it has been
difficult for clients renewing coverage to estimate their foreign travel exposure.
Foreign voluntary workers’ compensation (FVWC) remains the most There is some good news, however, in that insurers are still willing to make foreign
noteworthy coverage for the highest probability to pay claims. It is generally package policies non-auditable.
accepted that working from home will not impact available coverage for local
nationals, U.S. expatriates, or third country nationals (TCN). Employees who have

Primary Foreign Casualty Primary Foreign Property
Through the first three quarters of 2021, we saw rates decline from a starting position of Carriers have been requiring detailed construction, occupancy, protection and
+5% for liability and +15% for auto liability to flat for both coverage lines. In 2022, rates exposure (COPE) information prior to offering quotations, a situation not likely to
on loss-free guaranteed cost programs are projected to remain flat on renewal business. change in 2022. Risks exposed to natural catastrophe continue to see increased rates
While carriers are looking for new business, they are not competing to win it on rate. and deductibles. Many carriers are now requiring risk engineering surveys on foreign
Attritional losses and high-hazard risks continue pushing price increases. property for high-hazard risks and locations over $20 million insured values (in U.S.
dollars). This requirement will extend into 2022.
While primary international general liability remains flat, rates and minimum
premiums continue to be the driving forces in the excess liability marketplace. As Clients remain interested in engaging loss control and third-party vendor valuations to
an example, Canada’s umbrella market is usually higher than the norm. Automobile present their risks in a better light to underwriting carriers. By doing this, they are more
coverage in the United Kingdom and Europe is also stabilizing, although carriers are likely to achieve favorable terms and appropriate property valuations.
being very selective as related to risk acceptance.
How USI Can Help
USI facilitates its global risk assessment process for multinational companies by working with clients to review their international exposures and determine the best
international program structure that works within their risk management strategy. USI has found that by moving to a centralized master program, clients can achieve
overall premium savings, have concurrency and consistency of coverage, and eliminate coverage redundancy and potential gaps. We do this by:
Preparing early for renewal, developing a plan of action, and dialoguing with both incumbent and new markets at least 150 days in advance.
Reviewing alternative program structures to ensure the current structures are the most optimal from primary layer limit, cashflow, retention level, cost, and collateral
perspectives.
Utilizing our market connections at the highest level. This helps secure the best terms and conditions available in the market while also providing complete and clear
exposure information to showcase a full picture of the risk. Given the current market, this includes additional trip/travel information, COPE data on international
locations and COVID-19 safety protocols.
Reviewing and confirming that all necessary admitted (local) insurances are purchased in alignment with local regulations while also partnering with umbrella
coverages to eliminate duplication of coverage.
Engaging continually with USI’s Preferred Broker network of international broker partners to understand changes in local coverages, requirements, and laws related
to insurance that could impact their ongoing operations. In addition, we suggest quarterly check-ins to get ahead of any new expansions into a new country/risk.
Continually tracking international total cost of risk(TCOR), which allows clients to manage their TCOR on a global and local basis.

ENVIRONMENTAL

Product Line (YOY) (First Half) Secondly, the double-digit growth of capacity in this industry continues, forcing
Environmental Combined General Liability/Pollution 5% to 15% 5% to 15%
environmental insurers to embrace “big data” and identify better efficiencies to handle
the business (big data are gigantic data sets that inundate businesses daily and are hard
Excess Combined General Liability/Pollution 5% to 20% 7.5% to 15% to manage). We are seeing improvements with certain insurers utilizing big data to turn
Environmental Contractors’ Pollution 10% reduction to flat 10% reduction around transactions more rapidly, particularly for large portfolios. This is certainly a
to inflationary positive trend.
increase
Environmental Pollution Legal Liability Flat to inflationary Flat to 5% increase Tougher risks requiring significant limits must generally have more excess layers to
increase
reach the required capacity. However, there is good news for those that can go to the
View our Historical Rate Index charts market early and have a generous amount of time to implement: it’s now easier to
develop a quota share structure when significant capacity is needed to improve costs
and efficiencies.
PFAS Coverage
We are seeing more rate stability on combined casualty and excess placements. Additionally,
underwriters in the marketplace are being more cautious and scrutinizing all risks regarding In another trend expected to continue into the foreseeable future, insurers are pulling
the emerging chemical, perfluoroalkyl and polyfluoroalkyl substances (PFAS), known as back coverage for PFAS. Many are automatically including broad exclusions for
“the forever chemical.” Some underwriters are quick to apply a broad exclusion for cleanup cleanup and third-party coverage. Some, but not all, are willing to assess the risk for
liability and toxic tort; others are being more thoughtful in analyzing the risk. those that have good information or arguments.
Anticipated Trends for 2022 Claims related to PFAS substances are developing at a faster pace for targeted classes
of risks like airports, landfills, wastewater treatment and industrial sites with exposures.
The marketplace is still dealing with the exit of two long-time industry giants, AIG and These materials are considered ubiquitous in the environment because they are in
most recently Zurich, which occurred in the past few years. While the transition to so many products. With liability potentially everywhere, there is much uncertainty
other carriers has gone smoothly, structuring a large amount of capacity is not as easy.
The capacity is there, but more insurers are needed to participate than in the past.

from a regulatory standpoint, although New Jersey seems to be a role model for the – The EPA defines environmental justice as “the fair treatment and meaningful
Environmental Protection Agency (EPA) and other states because of its stringent involvement of all people regardless of race, color, national origin, or income with
groundwater requirements and pending soil requirements. respect to the development, implementation, and enforcement of environmental
laws, regulations, and policies.”* In 2020, New Jersey became the first state in
Further, the EPA has recently announced that it will set up new requirements for the U.S. to pass environmental justice legislation, requiring mandatory permit
manufacturers to report PFAS in their products. Commercial general liability (GL) denials if an environmental justice analysis determines a new facility will have a
insurers are beginning to add PFAS exclusions to standard GL policies. We anticipate disproportionately negative impact on overburdened communities.**
it will be more difficult to secure product pollution coverage in the environmental
market for any product that contains these materials. – By imposing higher fines and penalties, we are seeing regulators across the
country take a more targeted approach to companies with operations that
Lastly, state regulators are issuing many requests for information to determine potential contaminate or release hazardous substances into underserved communities.
responsible parties for PFAS contamination in groundwater. The question is whether For those interested in advancing environmental justice across their states, New
these requests for information will trigger the “duty to defend” clause on pollution Jersey will likely be a role model.
policies, assuming no PFAS exclusion exists.
Once the pandemic settles, environmental insurers may perhaps develop viable new
We project the upward trend of environmental claim severity and frequency will solutions and innovations in mergers and acquisitions, cost cap policies, climate
continue into 2022 and beyond. The marketplace is still highly competitive, and with change, and coverage for future pandemics.
several new entrants, it will stay this way for some time to come.
Other Emerging Risks

More companies are seeking product-pollution liability coverage as the result of The Highly competitive
additional toxic tort litigation around products that are toxic to humans or the
environment. This is an area for growth in the marketplace, either as a stand-alone Market 50+ insurers
solution or combined on a site policy or blended with a GL policy. Today
There is tremendous focus on environmental, social and governance matters
(ESG). There are several trends to note in this area:
– Environmental insurers have been watching the uptick of climate change risk and
ongoing litigation, with some exiting the market for industries that are primarily Over $700 million
involved in coal, or whose revenue is primarily derived from coal. This will make
finding environmental solutions for the coal industry even more challenging in Market Stable, with some potential restriction in
capacity per deal, per insurer
an already limited marketplace.
Capacity In tougher risks, more excess insurers may
– Environmental justice issues are moving to the forefront, with claims rising in
underserved communities where there is environmental contamination (i.e., be needed to achieve desired capacity
toxic and hazardous substances in the air and groundwater).
*https://www.nj.gov/dep/ej/docs/furthering-the-promise.pdf
**https://www.nj.gov/governor/news/news/562020/20200918a.shtml

How USI Can Help
USI assists its environmental clients by:
Creating an environmental profile to identify
exposures associated with operations, helping
to quantify and qualify the impact on the
Overall Marketplace Trends organization to determine appropriate risk
management and insurance solutions.
Expansion of coverage: More markets offering some broader coverage
enhancements to capture greater market share, such as first-party “diminution in Developing formal and customized risk maps to
value.” For “defense outside of limit,” either at a defined limit or in some cases on a identify the frequency and severity of fines and
contractors’ pollution policy, insurers may provide unlimited defense coverage. A penalties for non-compliance, spill events, known
new cost cap policy has been reintroduced for cleanup projects that exceed and unknown remediation, and toxic tort liability
$5 million.
Developing sophisticated risk model platforms for
Transactional risks: 10-year term policies for historical pollution legal liability significant liabilities, using Monte Carlo analytics
are still available from a short list of insurers. (an analytical technique for modeling probability
outcomes) to look at a range of probabilities and
Higher hazard risks: These, such as energy, mining, petrochemical, power and forecast potential liabilities over a long horizon.
utility firms, and fuel hydrant systems (including airports), may find only short
policy terms of one-to-two years. Developing effective environmental risk insurance Fo
strategies for acquisitions or divestitures of us
Other claims: Typical claims continue, such as those related to mold, legionella, businesses and/or real estate to facilitate
dry-cleaning solvents, and petroleum. transactions and protect corporate assets.
For additional information, contact your USI

representative or email us at [email protected].

AVIATION
Year-End 2021 Forecast 2022 In the first quarter of 2022, a new carrier will be entering the aviation insurance market.
Product Line (YOY) (First Half) This is expected to bring new capacity into the marketplace and will likely result in
Aviation Up 15% to 25% Up 10% to 20%
a more competitive environment among underwriting companies. There are also
signs that existing carriers are looking to expand their offerings and appetite. The
combination of a new market entrant and the potential expansion by existing markets
should help alleviate the capacity shortcomings experienced since 2018.
Insurance buyers should keep in mind that aviation insurers and reinsurers are seeking
consistent profitable returns from their aviation portfolios. There is a strong shared
Highlights/Changes Since Second Quarter 2021 desire across the industry to establish a profitable floor in an environment of rising
claims costs and increasing liability awards in aviation settlements and judgements.
The global aviation insurance market experienced three years of shrinking capacity and
hard market conditions from 2018 to 2021, with many aviation insurance buyers paying Here is a closer look at how some segments of aviation may be impacted by market
consecutive double-digit rate increases. Many operations have experienced higher levels of conditions in the first half of 2022:
underwriting scrutiny.
Major renewals in 2021 showed a decreasing rate curve, with many aviation carriers Owner-Flown Aircraft
demonstrating a renewed willingness to compete for new accounts. The anemic capacity Coverages are being reduced by the scarcity of higher liability limits.
levels experienced in 2019 and 2020 have stabilized somewhat, and there have not been any
carrier exits from aviation since 2019. Pilot training is being scrutinized more heavily, and new training requirements
are being mandated.
Anticipated Market Trends for 2022
Pilot age is being closely scrutinized, and older pilots may have trouble
The moderating rate curve is expected to continue into the first half of 2022. Even finding coverage.
though we are seeing the rate environment stabilize, underwriting standards remain
high across the industry, and underwriters are continuing to seek rate increases on Premium increases are in the double digits, between 10% to 20%.
most renewal accounts.

Charter Operations How USI Can Help
Extensive loss history could mean difficulty in finding 100% placement. In many USI works closely with our aviation clients to develop a comprehensive risk
cases, a layered program is needed. management strategy tailored to their unique exposures and focused on mitigating
Single pilot charter operations are under intense underwriting scrutiny and limits their cost of risk. Processes include:
have been drastically reduced. Generating complete analytics to understand and quantify exposures.
Large fleets with a history of attritional losses are facing 5% to 15% rate increases Reviewing program options and retention opportunities.
and higher deductibles. Evaluating program limits and coverage needs.
Developing an extensive, comprehensive underwriting submission an loss

Rotor Wing Aircraft mitigation narrative highlighting training and safety protocols, risk control claim
management measures, and more. This narrative helps demonstrate “best in
This category has been especially hard hit, with rate increases of 10% to 50%,
class” status.
depending on loss history.
Researching markets and identifying carriers with whom clients can build
Large commercial rotor wing fleets require a vertical program structure in which strong relationships.
multiple insurers participate.
USI’s approach is especially valuable when purchasing or renewing coverage during
challenging times like these, when companies may be pressured to accept the pricing,
Manufacturers’ Product Liability terms and conditions imposed on them by restrictive carriers.
Potential rate increases of 5%+, depending on the critical nature of the product To achieve a favorable coverage outcome, USI suggests:
and limit needed.
Starting the renewal process as early as possible to allow time for renewals to be
Airport and Municipality Coverage fully marketed and to schedule virtual meetings with underwriters.
Potential rate increases of 10%+, with some supplementary coverages Consulting with USI’s National Aviation team, who can help guide the process. The
being reduced. team suggests ways to improve submission integrity and timelines, and advocates
on the client’s behalf.
Providing detailed information that allows us to better understand your company’s
risk management situation and needs.
Completing applications and questionnaires completely.
The moderating rate curve is expected to continue
Highlighting your company’s focus on safety and pilot training protocols,
into the first half of 2022. Even though we are especially training that goes above and beyond Federal Aviation Administration
seeing the rate environment stabilize, underwriting (FAA) requirements.
standards remain high across the industry, and
underwriters are continuing to seek rate increases on Being open to underwriter and loss control visits.
most renewal accounts.”
For additional information, contact your USI representative or email us at
[email protected].

E XECUTIVE & PROFESSIONAL RISK SOLUTIONS (EPS)

Product Line (YOY) (First Half) Public Company Directors & Officers (D&O)
Public Company Directors & Officers (D&O) Down 5% to up 25% Primary: Flat to +20%
Excess: Down 10% to up
10%
The overall public company D&O marketplace continued to stabilize due to a significant
Total: Down 5% to up 15% decrease in federal securities class actions (SCAs) in 2021 and the emergence of new
Private Company and Not-For-Profit (NFP) D&O Up 5% to 25% Flat to up 20% capacity targeting excess layers of coverage. Moderate increases are now the norm, with
some exceptions.
Employment Practices Liability (EPL) Up 5% to 20% Up 5% to 20%
Fiduciary Up 10% to 100% Up 10% to 100% A limited number of companies that have outperformed peers, stabilized their financial
condition and/or enhanced their environmental, social and governance (ESG) risk profile
Crime Up 5% to 15% Flat to up 15%
saw small (5% or less) decreases on their overall D&O programs, driven almost exclusively
Professional Liability/Errors & Omissions (E&O) Up 10% to 50% Up 10% to 35% by competition for excess and excess Side A layers. Retention levels generally stayed the same
or increased slightly.
Network Security & Privacy (Cyber) 40% to 50% for optimal 40% to 50% for optimal
risks; 50% to 100%+ for risks; 50% to 100%+ for
less optimal risks less optimal risks
Initial public offerings (IPOs), particularly special purpose acquisition company (SPAC)
IPOs and the subsequent de-SPAC IPOs (the new public company formed after the
business combination of the SPAC and the target company), continued to pay considerably
Technology E&O 35% to 50% for optimal 40% to 50% for optimal more for D&O insurance than their long-established publicly traded brethren, but even
risks; 50% to 100%+ for risks; 50% to 100%+ for those costs and retentions lessened from the first half of 2021. Where retentions of
less optimal risks less optimal risks $15 million or more were standard for traditional IPOs and de-SPAC programs, retentions
Representations & Warranties Up 20% to 30% Flat to down 15% of $10 million or less emerged as 2021 ended. For SPACs, retentions of $5 million or less
began to materialize.
Kidnap & Ransom Flat to up 10% Flat to up 10%

Conditions should continue to moderate unless there is a major stock market
correction and/or a tip into an economic recession. Companies should continue to
market their D&O programs to obtain optimal results.
Overall, we anticipate programs renewing with flat-to-modest increases for most
insureds with no significant claims. Retention levels and other coverage terms should
also remain stable. Importantly, industries and organizations with the most concerning
risk profiles — cryptocurrency, biotechnology, life sciences, general healthcare and
technology industries, cannabis, and those that have had significant D&O claims
activity in the past five years — will have a more limited group of interested insurers.
This will lead to relatively less favorable terms.
D&O insurance buyers should expect continued underwriting scrutiny and a more
rigorous renewal process, especially around ESG frameworks. Disclosures and
representations will be evaluated more deeply in 2022 as related to climate-change
exposures, cyber risks, commitments to diversity, equity and inclusion (DEI), and
post-COVID-19 return-to-work strategies.
How USI Can Help
USI can assist clients by:

Starting the placement process early.
Approaching multiple insurer channels (retail and wholesale) and marketplaces
(U.S., Bermuda, and London).
Strategizing with clients about marketing efforts, incumbent relationships, and
available new capacity.
Preparing clients for corporate governance questions in relation to ESG,
cybersecurity, regulatory exposure, and supply chain exposures.
Using analytics and benchmarking to focus on appropriate program structures.
Evaluating all options, including:
– Buying different D&O coverage. Buying more Side A Difference in Conditions

(DIC) versus Side ABC coverage, which can lessen a company’s premium spend.
– Retaining more risk. Buying D&O coverage with a higher retention, which can
help mitigate cost.

Private Company/Not-for-Profit (NFP) D&O
How USI Can Help
Private Company/NFP D&O premium and retention increases moderated, with some
renewals staying flat at the end of 2021. However, companies with particular risk drivers Communicating early and often, and setting
continued to experience higher premiums and retentions, as well as more restrictive appropriate and realistic expectations.
coverage terms.
Starting the placement process early and approaching
Predominant risk drivers include: multiple insurer channels when marketing.
SPAC targets and/or likely IPO candidates Preparing directors and officers for underwriting
questions on issues such as ESG amendments and
High debt burdens/bankruptcy potential
implementation, cyber resiliency, and return-to-work/
Significant exposure to supply chain disruption vaccination mandate positions.
Heightened antitrust exposures Identifying potential financial distress and/or social
Heightened cyber-related exposures justice exposures, working to help establish steps and
practices to mitigate these risks, and communicating
Mergers and acquisitions (M&A) activity, contemplated or in progress mitigation effectively to underwriters.
Claims reported or recent losses
Seeking favorable baseline D&O terms through USI’s
Firms in industries with significant antitrust exposures (healthcare, for example) struggled ExecuSafe panel of insurers. Pre-arranged terms can
to retain antitrust coverage extensions. The largest privately held companies saw limited broaden coverage for USI clients.
coverage (securities claims only) offered for the organization/entity itself (a pullback from
the full entity coverage historically offered) and/or a cut in capacity offered by insurers (from Improving clients’ understanding of Side A coverage
$10 million to $5 million, for example). specifically. Private companies and NFPs that do not
currently buy dedicated Side A D&O insurance should
Anticipated Market Trends for 2022 consider doing so.
Modest increases should remain achievable for many organizations. However, companies
will continue to face underwriting questions about the return-to-work environment (e.g.,
employee reintegration, vaccine mandate/exceptions), as well as questions related to ESG
commitments, cybersecurity, regulatory exposure, and supply chain risks.

Employment Practices Liability (EPL) Continued discrimination claims based on disability, age, race, gender, gender
identity, sexual orientation, and other protected classes.
Highlights/Changes Since Second Quarter 2021 Potential claims stemming from employee social media use.
With the COVID-19 pandemic dissipating and relatively less economic uncertainty, pricing Wage and hour claims as companies adjust their workforce classifications, including
increases moderated late in 2021. Single-digit increases were achievable in the absence of making distinctions between employees and independent contractors.
poor claims history or a major increase in exposure (e.g., acquisition or large layoff, etc.).
Insurers were willing to compete on EPL renewals if the insured’s business conditions were Third-party claims brought by non-employees for harassment or discrimination.
improving, an effective return-to-work transition plan existed, and employment policies Potential claims regarding medical marijuana use.
were keeping up with newer areas of exposure (e.g., gender identity discrimination, medical
marijuana uses, and claims regarding social media use, etc.).
How USI Can Help
Claims began to arise in late 2021 by employees terminated for refusing to get vaccinated
against COVID-19, while employment-related social issues like discrimination, harassment, USI can assist clients by:
gig-worker classification, and gender-pay disparities continued to worry insurers. Preparing clients to respond to expanded underwriting questions regarding the
Further, states like California, Illinois, New York, New Jersey, and Florida remained more impact of COVID-19 and any vaccine mandate or incentive protocols.
problematic for EPL insurers because of their employee-friendly regulatory and
legislative activity. Preparing clients to discuss their vision of a more remote workforce, if applicable.
Anticipated Market Trends for 2022 Alerting clients to the recently announced initiative by the DOL, NLRB and EEOC
to target employers that unlawfully retaliate against workers.
Moderate increases are expected to continue, and an increased focus on retention
structures is likely. Insurers may look to increase retentions in certain areas, such as Reviewing their EPL policies for “who is an insured” and for any exclusions to
claims by higher compensation earners, class or mass action claims, and/or claims determine if the coverage is suitable for their needs, especially when transitioning
brought in certain states (e.g., California). back to the office.
In the face of resistance to vaccine mandates in the U.S., there may be an increase in Evaluating whether specific coverages will be available (such as punitive damages
retaliation and/or discrimination claims under the Americans with Disabilities Act and wage and hour coverage).
(ADA) and/or Civil Rights Act of 1964 (specifically, for religious discrimination).
The continuation of additional underwriting and exclusions involving biometric Helping engage all available risk management services that are negotiated as part of
information are also likely to continue. Regarding claims, additional areas of standard EPL coverage.
concern include:
Reminding them to review and update all internal employment checklists and
The recently announced initiative by the U.S. Department of Labor (DOL), the contracts, consult with counsel, and develop any needed internal process or
National Labor Relations Board (NLRB), and the Equal Employment Opportunity checklist to ensure that their workers are properly classified as employees or
Commission (EEOC) to target employers that unlawfully retaliate against workers. independent contractors.

Fiduciary Liability High levels of company stock holdings in retirement plans.
Highlights/Changes Since Second Quarter 2021 Industries with challenging claims, such as higher education institutions, church
plans, and healthcare organizations.
The impact of excessive-fee litigation dominated the fiduciary liability insurance Prohibited transaction(s) between a plan and a disqualified person.
conversation in 2021, and many insureds saw double-digit percentage increases in
premiums in the second half of 2021. Significantly higher retentions for excessive-fee Also, recent court decisions have weakened ERISA statute of limitations protections
litigation also became the norm, as insurers looked to insulate themselves from claims for defendants, such as Intel Corp. Investment Policy Committee v. Sulyma and Walsh
alleging breaches of duty in the management of investment-related and recordkeeping fees. v. Bowers. As a result of these continued challenging conditions, we recommend
considering alternative quotes for 2022 fiduciary liability renewals.
Leading insurers have pushed for retentions as high as $5 million for excessive-fee and
or other class-action claims related to the Employee Retirement Income Security Act Potential good news for plan sponsors and fiduciaries does exist, however. All eyes are
(ERISA). Originally aimed at companies with defined contribution plan assets above on an upcoming Supreme Court decision that may reduce the number of retirement-
$500 million, these higher retentions are now also in play for companies with smaller plan excessive fee lawsuits in the future. In Hughes v. Northwestern Univ., U.S., No.
plan sizes. Furthermore, insureds have had to answer more underwriting questions about
19-1401, the university seeks affirmation of a previous decision by the U.S. Court of
retirement plan management protocols, commitments to measuring fee levels and
Appeals for the Seventh Circuit that rejected a proposed class action claim alleging a
fund performance, selection processes for recordkeeping services and other governance-
related issues. breach of fiduciary duty because lower-cost options were available to a retirement plan
it sponsored, but the lower-cost options were not selected by the plan fiduciaries. As
Anticipated Market Trends for 2022 some existing excessive fee cases have been put on hold pending this ruling, a win for
Northwestern should have a favorable effect on the fiduciary liability insurance market
Insurers will continue to focus on excessive-fee litigation exposures, with some leading in 2022.
carriers contemplating pushing retentions higher than $5 million. Standard fiduciary
liability retentions that remained very low in 2021 ($0 to $250,000) will likely be How USI Can Help
pressured upward by insurers.
Underwriters will continue to manage capacity offered ($5 million to $10 million
Preparing them for new or expanded underwriting questions about service
maximums) and ask questions regarding plan governance and investment
provider selection and comparison processes.
management practices. Underwriting questions will undoubtedly extend to cyber
protections, especially as the DOL issued formal guidance to ERISA plan fiduciaries Supporting the establishment of prudent processes in making fiduciary decisions,
confirming that they must take appropriate steps to identify and mitigate risks documentation of the processes, and compliance with ERISA, DOL and IRS
associated with internal and external cybersecurity threats. Plan fiduciaries have a regulations regarding participant disclosures and government reports.
responsibility to ensure the proper mitigation of cybersecurity risk.
Working with clients on appropriate governance controls, which can include
Other areas of heightened ERISA-related risk where limited competition could drive the creation of ERISA/fiduciary advisory boards and regular updates to a plan
rates higher include: sponsor’s board of directors.
Employee stock ownership plans (ESOPs), as company valuations may be outdated Supporting the addition of a forum selection clause to plan documents, specifying
or severely and negatively impacted in a down economy. the jurisdiction for litigation filed against the plan/fiduciaries.
Proprietary funds in the retirement plans (financial institutions). Sharing risk management support made available by fiduciary liability insurers.

How USI Can Help
Preparing clients to share details sought by

underwriters regarding transaction verification
processes and procedures. Clients that highlight
Crime/Fidelity Bonds
thoughtful risk practices for underwriters will
Highlights/Changes Since Second Quarter 2021 differentiate their risk profile.
Modest increases continued in the second half of 2021. Underwriting of internal controls Developing industry-specific strategies. For
and payment verification procedures continued to be a focal point, particularly around example, risk controls implemented by companies
phising/social engineering risks. that have staff working from home (such as
professional services groups) differ from the
specific controls maintained by employers whose
We anticipate the continuation of modest increases, with only best-in-class risk profiles staff works on location (such as construction
obtaining flat renewals or better. Getting full limits (or excess limits over sublimits) for companies).
social engineering exposures will likely be challenging but should remain available. USI
will continue the strategy of seeking excess sublimits for social engineering coverage Addressing potential crossover with cyber
from client’s cyber programs, where possible. insurance. USI can explain the differences and
Coverages for exposures like extortion, computer and funds transfer fraud, and seek to manage coverage applicability across
destruction of data will continue to be underwritten very carefully by crime different policies. In the event of a reduction in
underwriters, and maximum limits/capacity available per insurer will typically be limits overall, or a reduction for social engineering
capped at $10 million. Overall, we anticipate more competition on excess layers coverage, USI can seek additional limits in the
than primary placements. Finally, the industries that will continue to face the most excess market.
consternation in the market include cryptocurrency, casinos, and cannabis companies.

Professional Liability/Errors & Omissions (E&O) institution E&O, bankers’ professional liability (BPL), investment bankers’ professional
liability, and insurance company professional liability (ICPL).
In a hybrid office/home return-to-work model, where high turnover can be an issue,
The market related to professional liability/E&O continued to be firm, but with signs of there will continue to be overall underwriting focus on how professional services
stabilization in some areas. Many sectors experienced premium and/or retention increases firms are addressing deadlines and the continuity and quality of services performed.
between 10% to 50%. M&A activity, professional services expansion, and/or claims As a result, firms may face increased questions from underwriters related to staffing
activity increased this range in certain circumstances. We saw a pullback overall in carrier shortages and/or the use of independent contractors and business
willingness to “draw outside the lines” in miscellaneous professional liability. process outsourcing.
Anticipated Market Trends for 2022 How USI Can Help
Non-financial/non-technology: Law firms, mortgage processors, accountants, USI can assist clients by:
consultants, architects and engineers, project-specific construction and those
Providing them with curated, advanced underwriting questions and helping to craft
performing any valuation-based service will need to differentiate their risk profiles to
obtain optimal terms. We expect increases in premiums of 10% to 35%, along with appropriate responses early in the renewal process.
increased retentions. E&O insurers are also examining limits offered at renewal. For Tracking the most competitive insurers to better understand their underwriting
example, a carrier previously offering $10 million in limits may seek to reduce capacity appetites and willingness to address risks creatively.
to $5 million. We are currently seeing maximum capacity of $10 million.
Identifying and highlighting risk control and management differentiators.
Exclusions for regulatory exposures, deeper underwriting processes (particularly the
management of subcontractor and third-party consulting arrangements) and reviews Examining the scope of professional services, as many firms have modified and
of “professional services” definitions are likely to continue. Supply chain questions and diversified their offerings.
contractual requirements around provider agreements will likely be probed.
Amending current coverages, as needed.
Financial institutions: Investment advisors, broker-dealers, deposit-taking
institutions, and insurance companies will continue to be scrutinized at renewal. For additional information, contact your USI representative or email us at
Investment advisors with above-average investment performance and no claims should [email protected].
see more competition from insurance carriers, keeping premiums close to flat/modest
increases. There will still be limited primary markets for family office/trustee financial

Transaction Liability: Representations & Warranties Insurance
The transaction liability market firmed dramatically in the third and fourth quarters of 2021,
with the rate per million dollars of coverage increasing to 4% to 5% on average from 3.2% to
3.8% at mid-year. M&A activity is the key driving factor, having increased significantly over
2020 levels, with insurers reporting twice as many submissions than in 2020.
Claims are also a consideration, with most insurers citing a 20% frequency rate (one claim
for every five transactions) and increased severity. The total number of claims has also
increased, due to the continued uptake of representations and warranties insurance (RWI)
coverage as part of the standard M&A process. Although coverage terms remain relatively
broad, underwriters are pushing back on overly broad representations and continue
underwriting to COVID-19 impacts (specific to the transaction), with greater focus on
cyber exposures than ever before.

We expect transaction activity to moderate in 2022 as firms assess how sellers and
buyers may be impacted by proposed tax law changes. Rather than falling dramatically,
rates will likely moderate if M&A activity levels drop back to more historical norms.
We believe the rates will moderate because a considerable amount of capital is still “on
the sidelines” — capital that investors would prefer to see deployed.
How USI Can Help
Our extensive experience and capability in transaction liability helps clients work
through standard acquisitions and more challenging transactions that involve
distressed assets, heavy international exposures, and bankruptcy-related asset sales.
We pave the way for a “no surprises” experience for the client in a rapidly changing
transaction liability market. When engaged early in the transaction planning and
strategizing process, USI will share current market trends, demystify procurement
methods, and shed light on expected pricing, underwriting requirements, policy terms,
timing, and other variables.

[email protected].

Cyber Insurance: All Packaged Policies That Include Cyber/ The market for programs including cyber and technology E&O liability
Privacy Coverage Components has reduced.
Highlights/Changes Since Second Quarter of 2021 3. Carriers closely monitored and reduced capacity deployed on each account.
$5 million has become the “new normal” limit (versus $10 million).
Ransomware attacks continued to plague the cyber insurance market throughout the
second half of 2021. We saw a surge in probes into information security controls and Excess premiums provided only small (if any) discounts to the layers beneath, as
practices by insurers, which severely impacted coverage when deemed less optimal. insurers began to view the first $50 million as exposed in any given claim.
Simultaneously, organizations faced large extortion demands, wayward business
interruption losses, and increased regulatory scrutiny, which resulted in devasting losses 4. Renewed focus on the underwriting of critical information security controls and
when combined with the average network downtime of 21 days.1 All in all, 2021 was a year practices, which required the following to be fully implemented to receive the
in which insurers were presented with simultaneous market forces, including: “optimal risk” designation:
1. Increasing frequency and severity of ransomware attacks and network intrusions. Multifactor authentication (MFA).
Large ransomware breaches (e.g., Colonial Pipeline, ACER, Kia Motors, EXAGrid, Endpoint detection and response (EDR) and extended detection and response
Accenture, Kaseya, Blackbaud). (XDR) specifically in place and utilized on the entire network.
Between 2018 and 2021, attacks on technology vendors included SolarWinds 24/7 network monitoring of all logs and reports and security operations
Orion and Microsoft Exchange. center (SOC).
“Cyber hurricanes” became a familiar term, meaning an attack on a vendor may Network backups.
potentially cascade to customers of that vendor. Insurers have become increasingly Network segmentation.
concerned about the potential for supply chain liability in ransomware attacks.2
Privileged access management.
2. The reduction of carriers offering cyber coverages. Regular use of domain administrator assignments.
Some cyber insurers have discontinued writing cyber insurance or are offering
terms that are not commercially viable (e.g., coinsurance, onerous exclusions, and
restrictive forms).
Emphasis on information security

controls and practices has culminated
in massive changes in the way insurers
view risk.

Premium Changes
Primary Layers Excess Layers (with the first $50 million)
+40% to +50% +35% to 50%

with a complete submission and optimal no losses/complete submission and optimal
ransomware controls and no material loss events. ransomware controls.
+50% to 100% or higher +50%

if losses and/or suboptimal internal if losses and/or suboptimal internal
information security controls and processes information security controls and processes
were presented. were presented.
Policy Wording Changes Cyber Insurer Appetite Changes

For ransomware controls and mitigation techniques, insurers typically classified a risk
While ransomware affected all industries, insurers managed their exposures by
as either “best-in-class,” “above average,” “average,” or “below average.”
reducing the deployed capacity or increasing the overall retentions in certain hard-hit
industry verticals, including:
For average or below-average categorization, insurers looked to insulate themselves by:
Municipalities
Adding a ransomware exclusion.
Manufacturers
Reducing limits/capacity and increasing the retention of relevant coverage sections
for ransomware events. Educational institutions
Applying a form of coinsurance percentage for relevant coverage sections for Professional services firms (e.g., law firms, accounting firms, consulting firms)
ransomware events. Public officials/entities
Applying coinsurance for contingent (dependent) business interruption/extra Airlines
expense.
Healthcare
Requiring increased waiting periods for cyber property coverage sections.
Technology firms
Adding “specific event” exclusions for events that can potentially impair multiple
networks.
Adding infrastructure exclusions.
Reevaluating, where included, the underwriting and limits deployed for local cyber
and cyber/E&O policies.
Anticipated Market Trends for 2022 How USI Can Help
As we enter 2022, the rules of cyber insurance engagement have permanently USI can assist clients by:
changed. Legislation is potentially expanding the definition of personally identifiable
information (PII), adding to cybersecurity risks. Insurers have course-corrected their Engaging strategic resources, many exclusive to USI, aimed at evaluating and
view on cyber premiums, focusing on the targeted critical information security risks improving cyber hygiene and profile.
and refining their underwriting. This has culminated in the push that an organizations’
cyber risk strategies be grounded in a solid understanding of its unique cyber risk – Utilizing AnswerlyticsTM, USI’s proprietary cyber solution designed to reduce
exposures and the measures taken to mitigate existing and future exposures. exposure to risk from urgent vulnerabilities and emergent threats, and to bridge
the gap between traditional cyber insurance offerings and the next generation of
Today, cyber criminals are evolving ransomware beyond “hacking for cash” toward solutions. Learn more.
more destructive methods, such as “killware,” a type of malware that is being deployed
with the sole intention of causing physical harm, even death (for example, by attacking Leading a deliberate placement process, which shapes the conversation around
the networks that control traffic signals or flight control systems). The U.S. Department client risk profiles.
of Homeland Security warns that killware is the next big cyber threat.3 Leveraging customized terms in our PrivaSafe solution, which offers broader
This exposure trigger, in turn, may shift the focus to other lines of coverage just as coverage than the standard market, competitive pricing, and pre- and post-cyber
insurers are seeking to remove “silent cyber” (risks that are neither expressly covered event services.
nor excluded) from those lines. Other game changers might include increased global Identifying viable cyber insurers for harder-to-place risk profiles.
regulatory outreach and the normalizing of ransomware legislation (which may impact
the payment of extortion demands and the continued concern over losses related to an Providing analytical input on limits, claims impact, and cyber
IT supply chain). underwriting concerns.
Reinsurance cyber renewal challenges: For additional information, contact your USI representative or email us at
[email protected].
Post January 1, 2022, global reinsurers are targeting increases of at least 50.5%.4 When
questioned about the top 5 risks impacting profitability, reinsurers ranked cyber 1
https://securityboulevard.com/2021/09/downtime-the-real-cost-of-ransomware/
second for the first time, only eclipsed by climate change.5
2
https://www.isaca.org/resources/news-and-trends/newsletters/atisaca/2021/volume-35/surge-in-ransomware-attack-
and-10-biggest-attacks-in-2021
3
https://siliconangle.com/2021/10/13/dhs-secretary-warns-killware-next-big-cyber-threat/
Ultimately, we expect the cyber insurance market to continue to harden in 2022 as 4
https://www.artemis.bm/reinsurance-survey/2021.html, “Where Are Reinsurance Prices Likely to Rise and Fall at the
insurers persist in raising the benchmark on optimal risk profiles. On the brighter January 2022 Renewals?”
5
https://www.artemis.bm/reinsurance-survey/2021.html, “What Are the Biggest Challenges to Reinsurance Profitability
side, we see the cyber market innovate every year, offering policyholders access to Over the Next 5 Years?
mechanisms tailored to monitor and elevate their cyber hygiene.
INDUS TRY
UPDATES

MANUFAC TURING & DIS TRIBUTION
Manufacturing and distribution renewals are in line with the projections noted in this report Kingdom remained challenging during the second half of 2021. Underwriting, premium
for each line of coverage, with the following additions: uplift, and coverage limitations are the tools being used to improve market conditions. New
entrants have emerged in the market resulting from this shift, and, while this would appear
Highlights/Changes Since Second Quarter 2021 to create rapid moderation, change has been minimal. Underwriting scrutiny on business
operational risk profiles remains high.
In the second half of 2021, manufacturers enjoyed a rebound in production following the
COVID-19 pandemic and post-pandemic recovery. As a result of this rebound, and with Anticipated Market Trends for 2022
the rapid increase in consumer demand, driver shortage and resulting port congestion,
manufacturers experienced significant disruption of their supply chains. For more challenging classes of business such as leafy greens, tobacco, wine, nuts, grains, fish,
and liquor, manufacturers will continue to notice upward rate pressure, increased retentions,
Anticipated Market Trends for 2022 and decreased coverage capacity in 2022. More desirable classes of business will experience
moderation of rates. We expect these conditions to continue into 2022 and likely into 2023.
We expect these trends will carry through 2022 and potentially into 2023; they are currently
affecting vendor-customer relations and the cost of goods. In response, many manufacturers Trade Credit Risk
have placed anticipatory orders, which have resulted in higher carrying charges in their
operations. In fact, shipping costs reached an all-time high in September 2021 — double the The global trade credit risk market is poised for significant growth over the next several
shipping costs recorded in July.* years. This growth will largely be fueled by underwriting profitability and low combined
ratios, both of which contributed to the demand created by post-pandemic insolvency fears
Cargo/Stock Throughput and ongoing supply chain issues.
Highlights/Changes Since Second Quarter 2021 Losses in 2021 have generally been lower than anticipated, but as the challenges continue,
rate increases in 2022 are expected to be in the 10% to 20% range. Tougher classes of
Stemming from loss results over the past decade, overall market premium decline, and business, including risks with losses, technology, and private equity, could see rate increases
recent loss unpredictability, the cargo/stock throughput markets in the U.S. and United even higher.
*https://www.foxbusiness.com/economy/shipping-container-costs-record-high-china-us

How USI Can Help
In guiding clients toward achieving favorable coverage outcomes,
USI recommends they take the following steps:
Work with their broker to evaluate all supply chain exposures.

Work with their broker to evaluate all market and program
design options to identify cost saving and exposure
reduction opportunities.
Begin the renewal process at least 150 days prior to inception.
Complete a loss analysis early to assess the impact of program
structure, retention, and risk mitigation efforts. This establishes
the “ask” of the market, allowing for early indications from
incumbents and understanding of their options around limits,
retentions, coverage and price.
Clearly identify and differentiate each risk to the marketplace,
reinforcing risk quality and mitigation efforts. This step is
imperative and includes evaluating domestic and international
supply chain exposures as well as any continuity/
contingent plans.
Review and consider retention strategies for premium impact.
For additional information, contact your USI representative or

email us at [email protected].

RE AL ES TATE
Highlights/Changes Since Second Quarter 2021 How USI Can Help
Real estate renewals are in line with the projections noted in this report for each line To help maximize renewal outcomes, USI assists clients by:
of coverage.
Engaging USI cyber experts to analyze exposures.
Insurance Capacity: Property capacity has increased overall in the second half of 2021,
Making improvement and coverage recommendations.
although carriers maintain a controlled approach when deploying capacity on loss leading
or CAT exposed accounts. As outlined in other sections of this report, cyber and excess Accessing USI’s Risk Control team to assess security and location exposures to
liability pricing and capacity remain strained. Real estate companies are not isolated from reduce liability claims.
the impact of these stressed lines of coverage. Cybercriminals continue to find ways to
breach IT systems and protocols to wreak havoc on vulnerable companies. Ensuring contractual arrangements are properly aligned with the client’s insurance
coverage or their transferee’s insurance coverage.
Anticipated Market Trends for 2022 Reviewing non-traditional alternative structure opportunities to supplement the
client’s overall risk management strategy.
Excess liability for real estate companies remains challenged due to higher-than-expected
settlements resulting from problematic claims. Many umbrella carriers refuse to offer For additional information, contact your USI representative or email us at
capacity for certain real estate classes, due to crime-related claims as well as geographies [email protected].
that are quick to file lawsuits against property owners and managers. Both cyber and excess
liability coverage lines will not see any relief as we move into 2022.

CONS TRUC TION
Highlights/Changes Since Second Quarter 2021 Anticipated Market Trends for 2022
Plans for 2022 construction projects were underway well before the end of 2021, with many Continued advancements in technology are exposing contractors to additional cyber risks,
U.S. contractors optimistic about the overall growth of the industry. With the passing of the like advanced building information modeling (BIM), asset tracking, financial management,
$1 trillion infrastructure bill in November, consumer confidence continues to be strong, and wearables, and digital twins, to name a few. As federal mandates regarding COVID-19
the construction industry plans for a robust pipeline of projects (both public and private) vaccinations are being imposed, companies will need to be considerate of employees in how
through the new year. they navigate this process and compliance.
This positive trend was noted in FMI’s third quarter 2021 Construction Industry Finally, as corporate environmental, social and governance (ESG) initiatives are developed
Roundtable (CIRT) Index survey, which reported all-time highs and suggested a positive and executed, companies are facing increased scrutiny on the execution and implementation
momentum in backlog, business outlook, and labor costs into 2022.* The survey also saw of their corporate goals, which is creating more opportunities for claims in financial and
some mixed results, with notable declines across the cost of materials, and a less optimistic environmental lines, among other coverage areas.
view of the national economy and the local economies where CIRT members do business.
Additionally, BaseRock Capital Partners released its Q3 2021 M&A report that highlighted Coverage Line Updates
the economic, political, and social factors that together generated growth and kickstarted
2022.** The report discussed challenges that persist in supply chain and skilled labor, issues The following coverage updates go beyond our 2021 Mid-Year Market Outlook and may
that were also reported in USI’s previous Market Outlooks. As the report indicates, material not include all lines of business.
cost volatility in critical path components is creating a difficult contracting process for
all stakeholders. In fact, it takes only one internet search of “Backlogged Ships in Port” to General Liability
illustrate the stress on the supply chain.
We are still seeing a differentiation in pricing based on individual account merits, rather than
a broad-brush approach by industry. Most markets have, however, budgeted positive rate
increases going into 2022, which are expected to range in the high single digits to low teens.
*FMI Third Quarter 2021 CIRT Sentiment Index
**BaseRock Partners Third Quarter 2021 M&A Report

Auto Liability When considering first-quarter 2022 renewals and those beyond, USI’s construction team
suggests construction companies do the following:
After umbrella liability, auto liability is the second most challenging line of business for most
contractors. Its challenges are exacerbated by the lack of a skilled driver pool, social inflation, Take ownership of the data. Renewals are no longer about exposure data or
and the increased cost of vehicle repair. Telematics, driver profiling, and robust training mere storytelling. Provide lessons learned, areas of operational improvements, and
and education have become necessary operational protocols to stave off large increases at innovations being adopted to effectively manage immediate, interim, and long-
renewals. term risk.
Umbrella/Excess Communicate early and often with the USI construction team and with your
insurance carriers and sureties. As we move out of the pandemic into recovery,
Excess pricing, layering and capacity remain the biggest challenges for contractors, operational issues will persist, and more complex contracting structures will
regardless of size or industry segmentation. Price increases are beginning to show signs of emerge. Proactive strategic decision-making can be encouraged by effectively
slowing down, with single-digit percent increases generally viewed as a win. Residential risks communicating changes to partners.
(any frame variety) continue to require more time and creativity than others. New capacity
Audit the effectiveness of internal controls for areas of improvement. Carriers
is coming into the market, and carriers are re-evaluating layering and their overall appetite.
and sureties want to be confident in the company’s ability to pivot when necessary
We are cautiously optimistic that when the dust settles, the market will again attract two to ensure quality and stability. Contract risk management, supply chain
or three carriers per layer, instead of one carrier per layer for certain risks, as is the general management, and sourcing labor are three major areas at the top of mind for
situation today. construction insurers and sureties. Be proactive in the assessment of the company’s
risk appetite and profile.
Wildfire-exposed risks continue to draw attention. Losses from natural perils that occurred
during the summer months will impact balance sheets, even though there may be Stay abreast of emerging technology platforms that can help contractors
associated losses. effectively manage a project and solve for operational efficiencies. These platforms
can also be used as creative and effective tools to help demonstrate and execute a risk
Owner-/Contractor-Controlled Insurance Programs (OCIPs/CCIPs) management program.
Because of supply chain delays, labor shortage and volatility in material costs, project Consider the variety of risk financing opportunities available, and be open
durations are extending beyond what treaty or carriers can afford. This situation is creating to new methods of transferring, mitigating, or managing risk beyond traditional
challenges with carrier availability and capacity for certain types of projects. insurance procurement options. As the market continues to harden, companies that
can successfully do this will have less pricing volatility and ultimately more control
How USI Can Help For additional information, contact your USI representative or email us at
[email protected].
USI’s construction team strategically works with our clients by utilizing analytics, technical
resources, and claims advocates in a team-based environment. This structure and process
allows us to proactively stay ahead of emerging issues, advise clients on the most efficient
financial risk transfer programs, and aggressively manage and support our clients’ claims. By
working in this way, we can create a blueprint to help clients effectively maximize their cash Plans for 2022 construction projects were underway
flow while protecting their assets. Together, employing these strategies will allow for more well before the end of 2021, with many U.S. contractors
efficient bidding while driving growth and simultaneously managing risk for our clients. optimistic about the overall growth of the industry.”

HE ALTHC ARE
Highlights/Changes Since Second Quarter 2021 Excess automobile liability: Accounts that can demonstrate effective risk
mitigation and good loss history are experiencing flat- to single-digit renewal rates.
Primary professional liability: Domestic capacity continues to be available, Domestic capacity in the admitted market is available, but non-admitted, London
but at higher rates. Accounts that underwrite well are being offered single-digit and Bermuda capacity should also be considered.
renewal increases, and those that do not underwrite well (because of losses) are
experiencing renewal rates in the double digits, higher retentions, and reduced Management liability: Domestic capacity is available, but accounts are
limits. Capacity is available in London and Bermuda and should be considered. experiencing single- to double-digit rate increases with upward pressure on
deductibles and retentions, especially for employees classified as
Excess professional liability: Domestic capacity continues to be available, “healthcare professionals.”
but at higher rates. Capacity is available in London and Bermuda and should
be considered. Cyber: Strict underwriting guidelines are being applied to all accounts. Accounts
that are unable to demonstrate adequate exposure mitigation are likely to be non-
Property: CAT exposed properties are experiencing renewal-rate increases in the renewed or renewed with significantly less favorable terms. In other words, if they
“admitted,” “non-admitted” and London and Bermuda markets. Non-CAT-exposed do not comply with the underwriters’ requirements, they will pay more for less
properties with good losses can access the domestic admitted market and expect coverage at policy renewal. For this reason, it is essential for healthcare businesses
flat- to single-digit renewal rates. to maintain a detailed and affirmative description of key risk mitigation procedures.
For a more detailed cyber update, see the EPS/Cyber section of this report.
Workers’ compensation: Ample capacity and a competitive market. Rate
decreases are readily available for well-performing accounts.
Primary automobile liability: Accounts that can demonstrate effective risk
mitigation and good loss history are experiencing flat- to single-digit renewal rates.
Ample domestic capacity is available in the admitted market.

Primary professional liability, excess professional liability, workers’
compensation and primary automobile liability should improve due to
downward pressure on rates as increased competition returns to these
market segments.
Excess automobile liability and management liability should face continued
challenges with available capacity.
Cyber event coverage should face continued challenges with available capacity
and underwriting requirements.
How USI Can Help
USI supports our clients through the renewal processes by taking these and other
important steps:
Advocating on behalf of client when infectious disease exposure has, or is
presumed to have taken place within the scope of employment, so that workers’
compensation coverage will apply.
Working with the client to ensure all workers’ compensation claims are reported as
soon as possible, and that nurse case management is utilized as quickly as possible
to reduce indemnity and medical expense.
Ensuring that the employer’s liability limit is adequate for the exposure, and that any
claims are assigned to an adjuster with employer’s liability experience.
USI also supports clients in the renewal process with:
USI’s AnswerlyticsTM solution for comprehensive cyber risk control. For more
information about Answerlytics, see the EPS/Cyber section of this report.
Risk identification and mitigation techniques for professional liability, automobile
liability, D&O liability, EPL, and property.
[email protected].

PUBLIC ENTIT Y & HIGHER EDUC ATION
Highlights/Changes Since Second Quarter 2021 prove pivotal, as lawsuits arise from EPL insurance claims, and from employees
contracting COVID-19 at work after transitioning from their remote environments.
The P&C marketplace for public entity (PE) and higher education was challenging While there have been few concrete cases and verdicts so far, it is highly likely there
for insurance buyers during much of 2021 and will likely remain this way into 2022. will be an increase in lawsuits going forward.
Contributing factors:
Sexual abuse and molestation (SAM) coverage has been a hot topic for many
The loss of carriers and markets have led to loss of capacity. Over the last two years within the public sector, education, religious, and non-profit classes of
years, the PE casualty marketplace has seen a mass exodus of carriers, with large business. Recently, SAM coverage has garnered significant attention due to the
losses clearly the driving force. The excess liability market is particularly affected. exploration of increasing “lookback windows” by various jurisdictions. These
lookback windows, which identify a period in which alleged victims can seek
Reinsurance rates continue to rise due to escalating losses. In recent years, the justice, have been established in eight states and the District of Columbia.
reinsurance marketplace has been impacted by increased litigation, nuclear verdicts,
defense costs, and frequency of global natural disasters. Law enforcement issues have become a primary force behind the market shift
over the last few years. Law enforcement liability claims are increasing in frequency
The impact of COVID-19 on insurance costs has not yet been felt within the and severity for various reasons, impacting insurer ability to provide necessary
marketplace. This may change as variants continue to emerge and as uncertainty capacity at an affordable price.
about managing workplace vaccine requirements lingers. In fact, 2022 may

Additional Updates
Cyber Market Update for Public Entity & Higher Education
We are witnessing a re-underwriting process necessary to ensure the long-term viability Early indications of double-digit increases in the
of cyber insurance coverage offerings. In fact, most insurers have reduced capacity, and are casualty lines of business petered out in the first quarter
increasing retentions and underwriting requirements at a time when public entities and of 2021 and are ranging from 5% to 7% for many of
higher education institutions are high on the list of businesses targeted by bad actors. our municipalities and universities. In 2022, markets
may continue to offer lower rates than expected in
The increase in frequency and severity of ransomware attacks is also leading to significant the absence of global catastrophes or pandemic
pull-backs on dependent business interruption (BI) coverage. It is common to see this
coverage excluded or significantly sublimited when the exposure is deemed too great. Given lockdowns. For example, we are presently seeing a
the breadth of recent ransomware incidents, this situation is likely to expand and continue slight stabilization in the property marketplace with
into 2022. rate increases of 5% to 9%, versus more than 10% on
average over the past two years.
We remain concerned about insurers placing significant restrictions on available limits
of coverage. Cyber insurers are implementing aggressive de-risking strategies to reduce Competition for desirable accounts remains in the
their exposure to catastrophic loss. Primary layers of $10 million are becoming scarce, for marketplace and will continue into the new year. Rate
example, and insurers are more frequently building towers in layers of $5 million or less to increases ranged from 0% to 7% during the last half
minimize risk. of 2021 for all lines of insurance except cyber liability,
Although no single IT security process, patch, or software can fully prevent cyberattacks, law enforcement liability, and umbrella limits (above
insurers have identified multifactor authentication (MFA) as one of the most effective risk $10 million). The trend is favoring those who submit for
management tools for deterring ransomware. Today, nearly all insurers require MFA for coverage or renewal early with a favorable risk profile.
remote access to sensitive information — without it, buyers may not qualify for a cyber
insurance policy or renewal coverage. For additional cyber updates, see the Cyber Liability Regarding student-athlete employment status, the
section of this report. situation gained momentum in September 2021, after
a memorandum was released by the general counsel of
the National Labor Relations Board (NLRB). The memo
indicated that, in the general counsel’s prosecutorial
view, college athletes are statutory employees under
the National Labor Relations Act with rights and
protections under federal labor laws. This decision will
likely affect workers’ compensation and other forms
of insurance available to colleges, lead to increased
litigation and organizing activity by athletes, and result
in broader protections for employee conduct.*
*https://www.businessinsurance.com/article/20211012/NEWS08/912345171/Student-athlete-employment-
status-memo-poses-comp,-insurance-questions-NLRB

How USI Can Help
USI helps its PE and higher education clients win in a challenging market by:
Reminding them to start the renewal process 150 to 180 days prior to inception, to
encourage a prompt response from incumbent markets regarding available options
(e.g., limits, retention, coverage and price).
Preparing a comprehensive market submission with the intention of highlighting a
strong or improving safety culture and risk management approach.
Developing analytics around risk financing opportunities focused on total cost of
risk (TCOR), which can result in improved decision-making and outcomes.
Using catastrophic property modeling to identify the appropriate amount of wind,
flood, and earthquake coverage, and ensuring that COPE data is detailed
and accurate.
Evaluating all U.S. and London market options, focusing on risk appetite
and industry.
Performing a cyber policy review to ensure an organization’s program includes
current coverage updates; using USI’s eRiskHub and other risk management tools
to help navigate cyber exposures and claims.
Offering our proprietary programs to address specific needs. For example, USI’s
suite of threat/terror solutions with broad coverage option for strikes, riots, and
civil commotion; our new Answerlytics cyber solution that bridges the gap
between risks and loss prevention.
[email protected].

AGRICULTURE
During 2020 and 2021, profitability for many businesses across the U.S. was Already struggling with CAT losses from the first half of 2021 — with wildfires, winter
constricted by excess supply, reduced demand, limited availability of personnel, and freezes and hailstorms as the primary driver — the insurance market is responding
severe weather. As a result, insurance coverage will cost more for consumers, including with higher rates and reduced capacity.
the agriculture industry, into the first half of 2022.
Property The market will likely continue hardening through 2022 and increases on property lines
from 10% to 25% should be expected. Some package carriers will withdraw from property
2021 Overview altogether and only offer coverage on the other lines.
Catastrophic (CAT) losses taxed the insurance industry during the second half of
2021, with the agriculture sector among the hardest hit. Severe weather has diminished General Liability
carriers’ profitability for agribusinesses and forced them to take a hard look at property
2021 Overview
rates. In addition, reduced demand for many agricultural commodities has left
businesses sitting on increased inventory — stressing the current storage capacities of
To counteract sluggish revenues, agribusinesses sought new product distribution
the sector and increasing insurance costs.
channels and enhanced service offerings during the first half of 2021. This has created
COVID-19 pandemic restrictions have also increased the cost of building materials a shifting risk profile for many in the industry. A proactive loss control approach will be
and labor, thus inflating the cost for new construction and repairs as the agribusiness necessary to allow for favorable positioning in the renewal process.
industry struggles to meet storage needs. Although current market predictions suggest
General liability (GL) rates remained relatively flat in 2021 as compared to other lines.
10% to 15% increases on property, many agribusinesses in the hardest hit areas will see
For the first half of 2022, we anticipate the same.
even more substantial rate activity.

Anticipated Market Trends for 2022 Umbrella/Excess Liability
Property, cyber and umbrella are the primary lines of coverage driving the insurance market. 2021 Overview
GL has performed well, and we expect rates to remain relatively flat on GL lines.
Umbrella/excess, the most significant of coverage lines, remained challenged during
the second half of 2021. More frequent and severe claims and large settlements
Product Liability and Product Recall
continue to increase rates by an estimated 20% to 25% and affect capacity limitations
for many in the industry.
2021 Overview
An influx of claims activity has taxed the marketplace and forced carriers to reduce
capacity and increase rates, with 2021 renewals seeing a 20% to 25% uptick. Within
The umbrella markets are still impacted by an increasing number of nuclear verdicts, a
the agribusiness sector, we continue to see the most claims activity in product recalls. situation that is leading carriers to increase premiums and reduce capacity. Rate increases in
This is due to allergens and product liability claims related to crop application services. 2022 should be much like those of 2021, ranging from 20% to 25%.
Despite a challenging year overall in the insurance marketplace, the product recall
market is still relatively strong.
Cyber Liability
Product recall has been viewed as an ancillary line of insurance, and most companies
have not purchased it because of the price. Now that there is a better understanding of the The agriculture industry has also been impacted by the hardening cyber market. Three
marketplace, more carriers are offering the coverage, driving prices down. key factors are leading the influx of cyber claims within the sector:
1. The shift towards computerized “precision agriculture”
D&O Liability
2. The industry’s traditional focus on performance and safety rather than
2021 Overview cybersecurity
3. The industry’s reliance on an extended supply chain (thus making it more difficult
Product liability and recall, EPL, and employer’s liability claims also placed stress on to secure)
this coverage line, and increased claims activity will push rates up a predicted 10% to
15% in 2022. These factors have made the agriculture industry a growing target for cybercriminals.
When combined with the overall hardening of the cyber market, cyber liability prices
The pandemic has negatively impacted management liability lines in the agriculture have been pushed up 20% to 50%.
sector. Most agriculture companies chose to stay open during the pandemic and
continued having employees come to work, a decision that contributed to a great deal In 2021, the agriculture industry had many large ransomware claims, raising its
of claims activity in 2021. awareness to cyber liability threats and increasing the demand for cyber coverage.
We expect to see substantial rate increases for D&O coverage in 2022. Pandemic-related
D&O claims will take several years to work themselves out, which is why it is difficult to
quantify the long-term impact.

How USI Can Help
Not only have carriers seen an increase in claims
activity, but also in the cost of those claims.
Pandemic restrictions have made investigating,
Anticipated Market Trends for 2022 settling, and closing claims a costly and lengthy
process. This will place continued pressure on the
Because of the large cyber claims that affected all industries in 2021, including agriculture, market, driving up rates and shrinking capacity in
cyber insurance rate and underwriting scrutiny will increase significantly. In 2022, we the first half of 2022.
expect the price of cyber insurance to increase from 50% to 200% in the agriculture sector.
For these reasons, it is more important than ever
Cannabis for agriculture companies to work closely with their
USI consultants. USI helps clients understand and
Anticipated Market Trends for 2022 evaluate their specific exposures and loss control
efforts and communicate them effectively to their
Cannabis is one of the few industries seeing rate decreases in the marketplace, a change that insurance carriers. To help encourage a positive
is being driven by loss experience. The industry was originally priced very conservatively by outcome during a challenging market, we suggest
carriers because it did not have an underwriting history. starting as early as possible, either at mid-term or
well in advance of renewal.
As the history has developed, the markets have found these businesses to be quite profitable
on most lines and are now pricing them accordingly. Because cannabis businesses are
subject to strict government oversight and compliance requirements, they are viewed as For additional information, contact your USI
great insurance risks. representative or email us at [email protected].
Some cannabis businesses are now offering home delivery of their product, which will
contribute to substantial auto liability rate increases in 2022. The D&O coverage line, which
has had ongoing challenges, is also priced extremely high in the cannabis industry.

LIFE SCIENCES
2021 Overview wording is inconsistent. This may negate coverage for an entire class of products
unless careful language negotiation takes place with underwriters.
The life sciences market outperformed the overall insurance market throughout
2021, with certain coverages experiencing premium reductions. Insurance companies Cargo/Stock Throughput
continue to view life science companies as desirable risks because they operate in a Price increases are being driven by complex supply chains, increases in catastrophe
highly regulated Federal Drug Administration (FDA) environment, which is why activity, lack of comprehensive underwriting data, and a higher incidence of
some insurers have introduced or expanded their underwriting appetite. This is claim activity.
especially true for product liability and traditional “package” policies, while other lines,
such as D&O, cyber, and cargo/stock throughput, are experiencing rate increases on Premium increases were more dramatic in 2020. While this has moderated in the
the middle to upper end of USI’s rate guidance. past few quarters, capacity remains limited, and deductibles continue to increase.
Insurers are intensely focused on identification of underwriting data for third-party
Anticipated Market Trends for 2022 locations so they can offer credible limits.
Product Liability Poor loss history is no longer viewed as bad luck. Insurance carriers expect
companies to qualify their suppliers and contract manufacturers.
There is ample capacity available in the domestic and international marketplace,
except for opioids, cannabis, and CBD, which are more closely scrutinized. D&O Liability
Renewal rates remain stable, with declines of more than 10% available when Special purpose acquisition company (SPAC) transactions spiked dramatically
competition is brought into the renewal process. in the first half of the year. While the pace has slowed recently, life science
entrepreneurs will continue to use SPACs as a strategic tool and means to capitalize
NDMA exclusions arising from the actual or alleged presence of nitrosamines, on promising new therapies.
considered a “probable” contaminant, are being added to most policies, and the

Private company D&O price increases can be managed similarly to the public How USI Can Help
marketplace by arranging meetings with current and prospective underwriters.
USI suggests life science companies take the following steps to encourage a favorable
Almost all transactions involving public companies experience litigation. Life coverage outcome:
science companies should be prepared to articulate their due diligence strategy as
part of the renewal underwriting process. Begin the renewal process 150 days prior to inception.
Evaluate all market options with their brokers, focusing on risk appetite and
Cyber product mix.
The industry is seeing increased claim activity for business interruption and Assess U.S. and London markets and be open to having multiple insurers on the
systems failure. program as opposed to one insurer that offers all coverages in a “package” format.
The adoption of advance technologies with internet connectivity will create Clearly identify and differentiate each risk to the marketplace, reinforcing risk
coverage challenges between traditional product liability, professional liability, quality and mitigation efforts — this is imperative. When marketing, it is critical to
and cyber liability. To avoid coverage disputes, it is imperative to understand all have data on facility characteristics, safety programs, and global supply
possible loss scenarios and work with underwriters to identify which policy will chain exposures.
best respond.
Delineate the product liability risk profile (high, medium, low) to help underwriters
understand therapeutic class and specific product risk factors.
Review contracts carefully to determine risk transfer/assumption language
that impacts the revenue exposure base associated with product liability
premium rating.
Assess all clinical trial activity to determine which studies have been impacted
either in a delayed start, longer duration, or reduced patient population.

USI’s Contributors
Danette Beck Chris Lepore

Robert Bookhammer Mike Lezynski
Ryan Chartier David Manglano
Matthew Countie Nicole McMurtry
Andrew Doherty Douglas O’Brien
Brian Dove Timothy O’Connor
Renee Dube Glynis Priester
Stuart Freeman John Scales
Nadia Hoyte James Van Meter
Stacey Ince Charlie Wildes
Paul King Dru Wilson
John Klecha

How We Can Help
To help clients navigate complex business challenges, USI shares expert insights and key solutions through our Executive Series. Our
cross-functional teams work to provide timely information on new and evolving topics in risk management, employee benefits, personal
insurance and retirement. We then share tailored solutions to help you guide your organization successfully, enhance insurance coverage,
and control costs. For additional information and resources, please visit our Executive Insights page: usi.com/executive-insights

2022 PC Market Outlook

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2022 Commercial Property &

Casualty Market Outlook

Forecast Insights From USI

Executive Summary 03 Industry Updates 33

Market Update & Rate Forecast 04 Manufacturing & Distribution 34

Property 06 Real Estate 36

Executive & Professional Risk 22 Life Sciences 47

Forecast Insights | 2022 COMMERCIAL PROPERTY & CASUALTY MARKET OUTLOOK 3

Excess Auto Buffers Up 40%+ Up 40%+

Workers’ Compensation Loss Sensitive Flat to up 5%** Flat to up 5%**

Medical Malpractice Up 10% to 35% Up 5% to 20%

International Property, CAT Exposure Up 25% Up 25%

International Property, Non-CAT Exposure Flat Flat

*Including need for primary limits up to $2 million. Continued on next page

Excess Combined General Liability/Pollution 5% to 20% 7.5% to 15%

Environmental Pollution Legal Liability Flat to inflationary increase Flat to 5% increase

EXECUTIVE & PROFESSIONAL RISK (EPS)

Employment Practices Liability (EPL) Up 5% to 20% Up 5% to 20%

Fiduciary Up 10% to 100% Up 10% to 100%

View our Historical Rate Index charts

Forecast Insights | 2022 COMMERCIAL PROPERTY & CASUALTY MARKET OUTLOOK 5

Year-End 2021 Forecast 2022 Anticipated Market Trends for 2022

Forecast Insights | 2022 COMMERCIAL PROPERTY & CASUALTY MARKET OUTLOOK 6

Forecast Insights | 2022 COMMERCIAL PROPERTY & CASUALTY MARKET OUTLOOK 7

Forecast Insights | 2022 COMMERCIAL PROPERTY & CASUALTY MARKET OUTLOOK 8

Year-End 2021 Forecast 2022

Forecast Insights | 2022 COMMERCIAL PROPERTY & CASUALTY MARKET OUTLOOK 9

Forecast Insights | 2022 COMMERCIAL PROPERTY & CASUALTY MARKET OUTLOOK 10

Forecast Insights | 2022 COMMERCIAL PROPERTY & CASUALTY MARKET OUTLOOK 11

Forecast Insights | 2022 COMMERCIAL PROPERTY & CASUALTY MARKET OUTLOOK 12

For additional information, contact your USI representative or email us at [email protected].

Forecast Insights | 2022 COMMERCIAL PROPERTY & CASUALTY MARKET OUTLOOK 13

Commercial Automobile Liability

Forecast Insights | 2022 COMMERCIAL PROPERTY & CASUALTY MARKET OUTLOOK 14

Forecast Insights | 2022 COMMERCIAL PROPERTY & CASUALTY MARKET OUTLOOK 15

How USI Can Help

Forecast Insights | 2022 COMMERCIAL PROPERTY & CASUALTY MARKET OUTLOOK 16

Year-End 2021 Forecast 2022

Forecast Insights | 2022 COMMERCIAL PROPERTY & CASUALTY MARKET OUTLOOK 17

Other Emerging Risks

Forecast Insights | 2022 COMMERCIAL PROPERTY & CASUALTY MARKET OUTLOOK 18

For additional information, contact your USI

Forecast Insights | 2022 COMMERCIAL PROPERTY & CASUALTY MARKET OUTLOOK 19

Forecast Insights | 2022 COMMERCIAL PROPERTY & CASUALTY MARKET OUTLOOK 20

 Developing an extensive, comprehensive underwriting submission an loss

Forecast Insights | 2022 COMMERCIAL PROPERTY & CASUALTY MARKET OUTLOOK 21

Year-End 2021 Forecast 2022

View our Historical Rate Index charts

Forecast Insights | 2022 COMMERCIAL PROPERTY & CASUALTY MARKET OUTLOOK 22

How USI Can Help

USI can assist clients by:

– Buying different D&O coverage. Buying more Side A Difference in Conditions

Forecast Insights | 2022 COMMERCIAL PROPERTY & CASUALTY MARKET OUTLOOK 23

Forecast Insights | 2022 COMMERCIAL PROPERTY & CASUALTY MARKET OUTLOOK 24

Forecast Insights | 2022 COMMERCIAL PROPERTY & CASUALTY MARKET OUTLOOK 25

Forecast Insights | 2022 COMMERCIAL PROPERTY & CASUALTY MARKET OUTLOOK 26

 Preparing clients to share details sought by

Forecast Insights | 2022 COMMERCIAL PROPERTY & CASUALTY MARKET OUTLOOK 27

Anticipated Market Trends for 2022 How USI Can Help

Workers’ Compensation Loss Sensitive Flat to up 5% Flat to up 5%

Developing an extensive, comprehensive underwriting submission an loss

Preparing clients to share details sought by

Work with their broker to evaluate all supply chain exposures.