Well, here we are, middle of Summer, shouldn’t COVID-19 be in remission? That’s what everyone said, but no, not this crud. It seems like it just mutates and is now attacking a younger demographic, granted not as severe. However, the persistence continues to be puzzling to both experts and non-specialists alike. Just today, in Illinois, 11 counties were deemed to be at the “warning” level, not talking about Cook County and the collar counties either. These counties are located downstate and in the middle of the state.
This is all happening before the school year, which is not good for everyone who is involved. Going into this pandemic, I have to say I was very optimistic, then five months later and my optimism is waning.
On the insurance front, the overall market continues to harden. Insurance companies are seeing less submission activity and are awaiting the double hit of lower exposures going into the new renewals and a large amount of return premiums from audits due to layoffs and furlough activity.
While we expect the market to remain hardened through 2021, we also believe there are opportunities for above-average accounts to see some competitive pricing. That is because the carriers are not seeing a lot of activity. Though we do believe carriers will still walk away from business with average to below-average losses, for those accounts with a good loss picture, might not be a bad time to kick the tire.s
From a coverage perspective, we have seen the first pandemic business interruption forms on the market being brand new, with no idea what pricing will look like. Most programs now, especially financial products like Management Liability, will have COVID-19 questionnaires attached, mandatory even to get a quote. Expect that to persist and expand to other lines of coverage.
The last part of 2020 will undoubtedly be filled with uncertainty. Will local elections and presidential elections happen? Are our kids going back to school? Will we see football in the fall? Is baseball going to make it through the short season? Will restaurants be able to survive? What about commercial real estate? The questions go on and on.
We wish everyone the best going forward, and hopefully, we can find some answers soon.
Material posted on this website is for informational purposes only and does not constitute a legal opinion or medical advice. Contact your legal representative or medical professional for information specific to your legal or medical needs.