Commercial insurance buyers are likely to face rate increases for 2018 insurance programs following one of the most active and financially disruptive hurricane seasons in history, according to Willis Towers Watson's 2018 Marketplace Realities report.

As the industry continues to tally losses, the report indicates underwriters will be pushing for rate increases as they balance what is expected to be a significant earnings hit for many, and for some a potentially material capital hit. The pressure to raise rates will be tested by underwriters who need to dip into capital to fund their losses. For buyers, this may mean the long soft market for commercial property insurance could be over—at least temporarily.

Joseph C. Peiser, head of Broking for WTW North America, recommends that insureds "define their risk tolerances so they know where their ceiling is" if rates and retentions spike.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including and

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.