Several factors, including the recent COVID-19 crisis, have catapulted health care systems into what many are calling a “new normal.” Those in the space must prepare now for the emerging risks to follow.
The US construction insurance market is in a tight bind. Like much of the property & casualty (P&C) market, the construction sector is experiencing significant rate increases across primary, umbrella and excess, and specialty lines, as well as some reduction in market capacity and widespread restriction of risk appetite. The reasons behind this market tightening are multi-faceted, but one of the primary culprits is the increase in claim severity caused by social and medical inflation.
Over the past few years, the commercial real estate, hospitality and healthcare sectors have all experienced a significant uptick in insurance claims based on mold and indoor air quality issues. These quiet perils, which often remain undetected until it’s too late, can yield extensive claims, especially when high concentrations of people (for example, in hospitals or hotels) are exposed to the pollutants.
Mold could be described as the silent assassin of environmental risks. It’s a highly problematic but quiet peril that often goes unnoticed until it’s too late – and environmental insurance claims reflect this. Over the past few years, there’s been a significant uptick in both the frequency and severity of mold claims in commercial real estate, particularly in industry sectors like healthcare, hospitality and education – notably, K-12 schools.
The medical stop loss insurance market has experienced a surge in recent years as more employers in the United States attempt to save costs by offering self-funded health benefit programs and using medical stop loss insurance as a financial backstop.
Though Equal Employment Opportunity Commission (EEOC) charges dropped off in 2019, increased awareness of the pervasiveness of sexual harassment means new suits will likely keep coming. Companies can take proactive steps to help create safer workplaces.
Ironshore distinguishes itself in the industry by closely aligning our claim professionals with members of the underwriting, actuarial and finance teams. This is our way of ensuring that the people who make the promises, keep the promises and that our policyholder claims are handled in a professional and expeditious manner.