Moody’s: Pandemic, Cat Losses Push Up Commercial Prices
According to Moody’s Investors Service Inc., commercial insurance prices are rising as property and casualty insurers continue to be challenged by the coronavirus pandemic and catastrophes. A Moody’s report says rates are rising by 10 percent on average, and 83 percent of the commercial lines sector is experiencing increases.
The ratings agency noted that commercial insurance pricing was already on the rise before the pandemic. The increases were particularly pronounced in the general liability, commercial property, professional liability, and commercial auto sectors. Moody's says, “We expect price increases to continue into 2021 based on continuing adverse loss cost trends and low market interest rates.” Despite the challenging business conditions and rising rates, Moody’s says the outlook for the property and casualty commercial insurance sector remains stable for 2021.