We hope everyone enjoyed their Fourth of July weekend! Now that we're back, we're ready to jump into this week's Big I Buzz. In this week's edition, we are discussing the Mid-Year 2021 Commercial P-C Outlook, why Disney was sued by an insurer and the shrinking population of working-age people. 

Mid-Year Commercial P-C Outlook: Hard Market Pressure Continues

Challenges like COVID, catastrophic weather and other market pressures are exacerbating market challenges across all commercial property-casualty lines of business. According to the Big I, the report states the following:

• Rates for primary layers of cyber insurance are up 25% to 50%

• D&O saw second-quarter premiums increase between 10% to 50% due to the continued economic uncertainty in the wake of COVID-19. 

• Workers compensation appears to be performing well in most US states with rates either decreasing 10% or seeing an increase of up to 5% on average for guaranteed cost workers comp line or remaining flat or increasing by up to 5% for workers comp loss-sensitive programs. 

Read more about the report here. 

Disney Sued By Insurer

Fireman's Fund Insurance Company, a US subsidiary of Allianz,  is suing Disney stating that they are unable to pay for the "second wave" of claims on delayed film and TV productions. According to Insurance Business, "In the complaint, the insurer explained that it is not disputing insurance claims made by Disney during the "first wave" of COVID-19 shutdowns in March 2020. Rather, the insurer noted that it should not have to cover the "second wave claims that happened after film and TV shooting was allowed to resume in California and other regions." Read more about the lawsuit here. 

Employers Must Contend with Shrinking Population of Working-Age People

Throughout the last year, the number of working age people shrank. The Census Bureau estimates that the U.S. population ages 16 to 64 fell 0.1% in 2020 - "a scant drop but the first decline of any kind after decades of steady increases. It reflected a sharp fall in immigration, the retirements of the vast baby boom generation and a slowing birth rate. The size of the 16-64 age group was also diminished last year by thousands of deaths from the coronavirus," according to Insurance Journal.

The Federal Reserve Bank of Dallas states that 2.6 million people who were working before the pandemic now say that they're retired and not looking for a new job. Sharp gains in stock prices and home values, despite the deep pandemic recession, made it easier for many older Americans to leave the workforce early. 

Economists worry that sluggish population growth could mean less consumer spending and a less dynamic economy. Read more from Insurance Journal here. 

For more news, check out the Action news section of our weekly e-newsletter, Big I Buzz. If you aren’t subscribed, click here to add your email to our emailing list. We hope that everyone has a great rest of their week!