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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.

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