Tech and Professional E&O Insurance Rates Declining in 2017 Outlook

Tech Professional E&O Rates

In its 2017 Insurance Market Outlook, Wells Fargo provides a mixture of positive and negative news for businesses. Positively, Wells Fargo described 2017 as a “continued buyer’s market.” However, the report also indicates that some forms of insurance are increasing. Notably, Workers Compensation costs in Oklahoma may be increasing following an Oklahoma Supreme Court ruling that found employer opt-out to be unconstitutional. Meanwhile, companies have experienced an increase in securities class action lawsuits, as well as an increased focus on cyber crime as high-profile breaches continue to occur.

Businesses are also feeling the pinch associated with rising healthcare and prescription drug costs. Rising healthcare costs are associated with a number of factors, including incorrect predictions regarding the risk profiles of individuals who are now enrolled, and an increasing number of health insurance companies abandoning the marketplace.

On the positive end, the Wells Fargo report presents some good news for both the service industry and technology sector. In particular, the report finds that E&O insurance rates are declining for the first time in years. With a flat to 5% decrease in rates predicted, Wells Fargo explains that “[r]ates are declining for the first time in many years due to the lack of complex litigation in the past year.”

Given these changes, service and technology businesses may seek to expand their E&O insurance coverage, or purchase this coverage for the first time if they’ve been holding back. In particular, the report explains that “brokers remain capable of securing material coverage enhancements to already strongly enhanced programs.”

Discussions — One Response

  • health medical news March 29, 2017 on 11:23 pm

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