Gulfshore Insurance > Client Alerts & Insurance News > Commercial Risk Management > 2020 Insurance Market Update for Associations

Commercial Lines 2020 Insurance Market Update for AssociationsFor many associations, insurance premiums are the largest overhead cost, so it’s very important to accurately forecast any changes. Each year, we review market conditions and trends that may impact your insurance renewal premiums, providing you with an educated look at how they may impact your association’s budget.

2020 is proving to be the most challenging market our industry has faced in years. Many clients are experiencing difficult renewals where they are encountering rate increases, deductible changes, and/or reduced coverage from carriers. In addition, the magnitude of COVID-related losses and the impact facing the insurance industry is unknown.

As we continue through 2020, you can expect Property rates to continue to climb; social inflation to drive Liability pricing; and the hard market for D&O and Excess Casualty to continue as carrier concerns remain.

We are breaking down what you can anticipate for the remainder of 2020, including current renewals, as you begin the budget planning process for 2021.

Property premiums generally are on the rise and carriers are utilizing more discipline when underwriting new and renewal business. From increasing rates, higher deductibles to fewer enhancements and stricter underwriting, even the best in class properties are feeling some pressure.

Carriers rely on computer modeling to manage their risk and to ensure rates are adequate. They are paying much closer attention to their models, not only across their books, but across each individually written policy. This means that clients with strong risk profiles and good loss history may be impacted.

  • Double digit rate increases can be expected. Non-CAT property with good loss history may see, on average 5% to 20% rate increases. CAT exposed property with good loss history can expect 15% to 30%+ rate increases. Accounts with poor loss history may see 30% to 60%+ rate increases.
  • Carriers may be looking to increase Wind Deductibles and limit or reduce coverage enhancements.


Ancillary (General Liability, Crime, D&O, Umbrella, Excess Liability)
Cyber and privacy issues continue to result in significant litigation, both from a regulatory and class action standpoint. Social inflation has created the most impact and disruption on umbrella and excess liability placements. Concerned with a litigious environment that is favorable to plaintiffs and increasing jury verdicts, carriers are pushing rate increases and tighter underwriting guidelines.

We expect primary and umbrella/excess casualty underwriters to maintain this stance throughout 2020.

We are seeing reduced capacity in primary and excess markets. Slip and fall claims combined with high medical costs have served to harden this market, particularly for habitational risks.

  • You can expect to liability rate increases between 2.5% and 15%.
  • Umbrella/Excess Liability rates continue to firm between 10% to 25%.


Flood insurance has been steadily increasing over the past several years and 2020 is no exception.  Flood insurance continues to see rate increases which varies by zone (VE, AE, X, etc.), with the percentage depending on the numerous variable risk characteristics of each property. New flood maps are currently being reviewed and associations will need to pay attention as to how any new map changes might affect their premiums.  While the overall map changes maybe anywhere from one to two years away from being adopted, it pays to be aware if these proposed maps will benefit your association or if they might negatively impact rates?  If so, there are steps that can be taken to “Grandfather” into current maps, if they are more favorable than the proposed ones.  We advise discussing this with your agent as each risk is unique.

Other Industry Issues & Considerations
Increased submission volume is allowing underwriters to be more selective. They are focusing on profitability and can be selective in what they underwrite.

If you have any questions, please do not hesitate reach out to your Gulfshore Insurance Client Advisor who can offer assistance. We are here to help.

Gregory Havemeier, CIC, AAI, CIRMS is a Client Advisor and Partner at Gulfshore Insurance specializing in community and condominium associations. Gregory works with a wide range of business clients to deliver strategic risk analysis and guidance. Comments and questions are welcome at