RPS Signature Programs

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  • RPS Signature Programs

    When you’re looking for specialized coverage for your clients, RPS Signature Programs are your go-to underwriting resource. Unique risks? New niches? Never been done before? That’s our specialty. We help provide your clients with specialized coverage from trusted carriers, so you can move on with confidence.

    We work with top-rated carriers to design custom coverage for unique businesses. That’s what makes us the premiere program administrator, bringing years of niche expertise and passion that cannot be found anywhere else.

  • News Releases

    RPS’ Lawyers Professional Liability Insurance Program with Core Specialty Insurance Holdings Now Available to Quote-Bind-Issue Online

    ROLLING MEADOWS, IL – May 10, 2022 – RPS Signature Programs, the program administration division of specialty insurance distributor Risk Placement Services (RPS), today announced that its Lawyers Professional Liability (LPL) insurance program is now available through the digital RPS Small Business Platform. On this platform, LPL coverage can be quoted, bound and issued online in just a few minutes with limits of up to $5 million (for qualified firms). “Our online platform allows us to bring our ‘digital-first’ mindset to our retail partners,” said Ryan Collier, RPS Chief Digital Officer. “Our Small Business Platform simplifies the entire underwriting process from quoting to issuance. This means that retail brokers can spend less time on each account while still offer their clients high-quality LPL coverage.” In particular, retail agents and brokers who serve “micro firms”, those with five or fewer attorneys, stand to benefit from the automated underwriting and online quote process. The RPS Lawyers Professional Liability program is now available to quote online on an admitted basis for law firms in 39 states, including Florida, Illinois and Texas. RPS launched the program, with Core Specialty Insurance Holdings, Inc. and its StarStone National Insurance Company subsidiary, in October 2021 on a non-admitted basis with the goal of offering admitted coverage in most states. RPS’ LPL program includes: First dollar defense option available 50% reduction for agreement to use mediation and the claim is settled at mediation (up to $25,000) A broad definition of insured takes into account the different professional services a firm may provide Pre-claim assistance About RPS Signature Programs RPS Signature Programs manages a variety of specialized programs on behalf of highly-rated carriers, offering proprietary insurance solutions in niche markets. Headquartered in Rolling Meadows, Illinois, RPS Signature Programs is a division of Risk Placement Services, one of the nation’s largest specialty insurance product distributors. Follow RPS on Facebook, Twitter, LinkedIn, Instagram and YouTube. About Core Specialty Core Specialty offers a diversified range of property and casualty insurance products for small to mid-sized businesses. From its underwriting offices spanning the U.S., the Company focuses on niche markets, local distribution, and superior underwriting knowledge; offering traditional as well as innovative insurance solutions to meet the needs of its customers and brokers. Core Specialty is an insurance holding company operating through StarStone Specialty Insurance Company, a U.S. excess and surplus lines insurer, and StarStone National Insurance Company, Lancer Insurance Company, Lancer Insurance Company of New Jersey, U.S. admitted markets insurers. The Company is rated A- (Excellent) by AM Best. For further information about Core Specialty, please visit www.corespecialty.com.
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    Rate Increases Moderate While Capacity Changes Continue in the Management and Professional Liability Markets

    Risk Placement Services' 2022 Management and Professional Liability Market Outlook After two years of turmoil, the Management and Professional Liability insurance markets are cautiously optimistic in 2022, according to a new report by Risk Placement Services (RPS), the Excess & Surplus (E&S) wholesale broker and managing general agency. RPS's 2022 Management & Professional Liability Market Outlook notes that these specialized market segments have moved beyond the uncertainty created by the COVID-19 pandemic. "In the latter part of 2021, we saw all the classic signs that a challenging market was in its final stages," said Manny Cho, executive vice president, Executive Lines, at RPS. "New entrants — both insurance companies and managing general agencies — came into the management and professional liability markets. Even with these new entrants, capacity and limits may continue to tighten. However, it won't be to the same degree that we saw during the height of COVID." After double-digit rate increases in 2021, the markets for management and professional liability have "rightsized" with regard to premiums. According to the report, insureds that are considered a good risk can anticipate rate increases in the 5-10% range this year. Yet there are exceptions. RPS cautions that many insureds will see premium increases outside of this range. For example, in the private company Directors & Officers (D&O) Liability market, a claims-free insured with strong financials should anticipate renewal increases of 7-25%, depending on the industry and jurisdiction. In the Fiduciary Liability market, defined contribution plans with more than $100 million in assets should be prepared for even steeper rate increases. Even with a clean claims history, those plans should expect to experience premium rate increases in the 10-50% range. Plans with a less pristine track record could be looking at premium increases as high as 100% this year. Capacity, competition and California According to Cho, another unfavorable market trend that will continue in 2022 is restrictive policy limits. With $5 million being the maximum coverage amount of most insurance companies are willing to offer for the majority of coverage lines, it could take more carriers and layers to reach an insured's desired coverage level. While new entrants are invigorating the market and increasing competition, that doesn't always translate into increased capacity or higher limits. In the private company D&O market, for example, many new managing general agency market entrants will only deploy $2-3 million in limits on a primary basis for favorable classes. For riskier classes, limits are in the $1-2 million range. For the public company D&O market, the report indicates that greater competition and increased capacity will be more prevalent in excess layers, rather than the primary one. Geography is another consideration, with insurance companies treading carefully in plaintiff-friendly jurisdictions such as New York City, Southern California and the Miami-Dade area in Florida. Capacity is at a premium in those areas as insurers decline to write coverage, particularly for Lawyers Professional Liability (LPL) and Employment Practices Liability (EPL). The Excess & Surplus market The complexities of Management and Professional Liability coverages make them particularly well suited for the E&S market. "Our ability to problem solve for Management and Professional liability insureds and their agents during the pandemic speaks to the advantages of these markets, particularly as coverages and limits became more restricted," said Cho. Another significant advantage of the E&S market is the ability to tap into wholesalers' expertise in securing coverages for hard-to-place risks and the underwriting relationships they bring to the table. Retail agents shouldn't underestimate the benefits of working with a wholesaler in these complicated and nuanced markets, the RPS 2022 Management & Professional Liability Market Outlook concluded. Read more in the full 2022 Management and Professional Liability Market Outlook.
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    RPS Team Announcement

    Zach Burdine RPS is pleased to announce Zach Burdine (Right) has assumed the additional role of Vice President – National Casualty for Risk Placement Services (RPS). In this expanded role, he is responsible for the strategic growth of the RPS casualty teams throughout the country along with his current responsibilities as RPS Area President.  Additional responsibilities will include product development and innovation, and creating efficiencies between our carrier partners and brokers. Burdine brings a combination of expertise, leadership and dedication to this role. Currently, he serves as RPS Area President, where he manages the binding/MGA production team in Texas and previously grew the RPS Energy Practice Group through recruitment and product development. Burdine is in his 20th year in the industry and has direct experience in both production and underwriting. He will continue to serve out of the Austin, TX office. Burdine is active within the Wholesale & Specialty Insurance Association as well as the Texas Surplus Lines Association, having chaired and served on various committees. He is also an active supporter of the Boys and Girls Club of the Greater Austin area.  Burdine holds a Bachelor’s degree in Management from Baylor University and a Masters of Business Administration from the University of Oklahoma with a focus in Energy. Additionally, he holds designations as an Associate in Underwriting and Energy Risk and Insurance Specialist.   Mike Mulvey RPS is pleased to announce Mike Mulvey (Left) has been promoted to Executive Vice President and Construction Practice Leader for Risk Placement Services’ Northeast region, based in New York. In this new position, he will work across RPS’s regional offices to leverage market access and industry expertise in the placement of Construction risks.   Mike joined RPS as a commercial underwriter and broker in 2005, moving into roles of increasing responsibility while enhancing his Construction industry expertise. Most recently, he led the RPS New York Metro office.    Mike will continue to report to RPS Northeast Region Leader Steve Levin.
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    RPS Signature Programs Launches New Real Estate Appraisers E&O Program with GenStar

    ROLLING MEADOWS, IL – March 10, 2022 – RPS Signature Programs, the program administration division of specialty insurance distributor Risk Placement Services, today announced the launch of a new Real Estate Appraisers Errors & Omissions (E&O) program with General Star National Insurance Company. Available to quote-bind-issue online in just two minutes through RPS’s Small Business Platform, this new offering provides E&O coverage for individual residential and commercial real estate appraisers. It is designed to protect against claims arising out of an act, error or omission that results in failure to render professional services for clients. “At RPS Signature Programs, we are specialists in E&O and professional liability insurance coverages,” said Adrienne Woodhull, Area President. “We are pleased to extend this deep expertise to Real Estate appraisers, as this new program gives niche professionals the confidence that their unique E&O exposures are covered should a claim occur.” General Star National Insurance Company, also known as GenStar, is a premier provider of specialty insurance, conducting business through its affiliate General Star Management LLC, and exclusively through a select group of wholesale brokers and program administrators. “Combining the tremendous security and Real Estate E&O expertise of GenStar with the experience of RPS, enhances the strength of both organizations. We are excited to move forward with this new program arrangement,” said Matt Brown, Senior Vice President/Delegated Division Manager for GenStar.  In commenting further about the new Real Estate E&O program, Martin Hacala, President and CEO of GenStar, stated, “GenStar continues to respond to the marketplace with unique protection for real estate risks. GenStar is fortunate to team up with RPS to deliver the specialized protection needed by real estate professionals. “ Highlights of the Real Estate Appraisers E&O program include:  Zero deductible  Broad definition of Professional Service (includes incidental services such as a notary public, member of a formal accreditation committee, standards review committee or similar board or committee)  Free extended reporting period for death, disability, or retirement  Defense costs outside the limits of liability  Prior Acts coverage with proof of continuous coverage  Free risk management assistance hotline for all insureds The Real Estate E&O program offers limits up to $1 million each claim to $2 million aggregate and is available on an admitted basis in all states except in AL, LA, NY, and WV.   About RPS Signature Programs RPS Signature Programs manages a variety of specialized programs on behalf of highly-rated carriers, offering proprietary insurance solutions in niche markets. Headquartered in Rolling Meadows, Illinois, RPS Signature Programs is a division of Risk Placement Services, one of the nation’s largest specialty insurance product distributors. About General Star General Star National Insurance Company is a wholly owned subsidiary of General Reinsurance Corporation, a member of the Berkshire Hathaway Family of Companies. General Star National Insurance Company is licensed in the District of Columbia, Puerto Rico and all states. General Star National Insurance Company has its principal place of business in Stamford, CT and operates under NAIC Number 0031-11967. Insurance is placed with General Star National Insurance Company General Star National Insurance Company is rated A++ (Superior) by A.M. Best Company and carries an AA+ Insurance Financial Strength Rating from Standard & Poor’s Corporation. It conducts business exclusively through a select group of program administrators and wholesale brokers. General Star Management, LLC California License # 0B14266   Media Contact: Sara Carlson 630-605-6935 sara_carlson@rpsins.com
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    Growing Frequency of Catastrophic Weather Events Impacts U.S. Commercial Property Market

    Risk Placement Services’ 2022 Property Market Outlook The U.S. commercial property insurance market continues to feel the impact of catastrophic weather and disaster events that have become more frequent, more severe and harder to predict, according to the 2022 U.S. Property Market Outlook by Risk Placement Services (RPS), the excess and surplus (E&S) wholesale broker and managing general agency. Occurring in atypical regions and/or seasons, such as last February's Winter Storm Uri in Texas and December's tornadoes across the central and southern U.S., expecting the unexpected has become the norm for a market where losses from unanticipated catastrophic weather events have reached into the billions of dollars. In a quest for profitability, E&S carriers have been shedding unattractive risks, raising rates, lowering coverage limits and adjusting policy terms, the Market Outlook notes. "Many insurance companies are hoping that those moves will pay off in 2022, but the E&S property market is complex and dynamic," says Wes Robinson, National Property President at RPS. "The uncertainty around catastrophic events means that most will be extremely cautious about how they approach this market." Robinson believes many insureds will see their rates moderate in 2022, but there will be plenty of exceptions, especially around catastrophe-exposed risks and/or loss-affected accounts. What insurers generally expect will continue is the warming trend across the U.S., which is driving the frequency and severity of natural catastrophes such as wildfires and tornadoes, the report states. Given the losses stemming from such events, improved pricing isn't enough of an incentive to keep many reinsurers from cutting capacity. "Climate change is now a strategic concern for many reinsurers as well as commercial property owners," Robinson says. Beyond Weather Events Catastrophic weather events add to the myriad other challenges facing the commercial property insurance market, including: Inflationary pressures stemming from the pandemic, which have resulted in increased costs for labor and materials. Supply chain disruptions are extending the time it takes to build, repair or rebuild commercial properties. As a result, many construction projects are running behind schedule, and it's increasingly common for a builders risk policy to expire before a project is completed. Late reporting of claims, which often occurs when there's property damage the insured did not initially discover (e.g., roof damage from hail) or did not realize was covered by their commercial property insurance. This is an issue when a claim is filed after a policy has been renewed, as the new rates won't truly reflect the insured's loss history. Underreporting of property values by insureds continues to be a significant challenge to insurer profitability. With inflation running at its highest levels in 40 years, the gap between what a property was insured for and what it would cost to rebuild it could grow significantly in 2022. This is a common issue in the habitational real estate sector where older buildings that need to be rebuilt to higher code standards often create claims that exceed the policy's replacement cost coverage. Limited capacity and treaty rate hikes from commercial property reinsurers. Advice for Agents As property insurance rates continue to rise, retail agents will continue to have tough conversations with clients, particularly those with properties in the growing number of areas prone to damage from convective storms, hurricanes and wildfires. Robinson suggests that those agents work with a wholesale broker who is experienced with challenging property exposures and has deep relationships with E&S insurers. "It is vitally important to start the renewal process early to be prepared for the unexpected with a back-up plan," he advises.  Download the Market Outlook >
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    Core Specialty Partners with Risk Placement Services to Offer Lawyers Professional Liability Insurance

    Cincinnati, OH: October 15, 2021/PRNewswire/ – Core Specialty Insurance Holdings, Inc. and its subsidiaries (“Core Specialty” or the “Company”) is pleased to announce to its brokers a new agreement with Risk Placement Services (“RPS”) to provide lawyers professional liability. RPS is a leading specialty program manager in the professional liability and errors; omissions marketplace. The new relationship will build on RPS’s underwriting and marketing experience in this niche. The program is now available on a non-admitted basis and the Company plans on offering admitted based coverage upon completion of its filings. This program, for standard market lawyers business with RPS, was established to complement Core Specialty’s non-standard lawyers product, offered through the Company’s limited distribution, and Core Specialty remains committed to servicing this market  segment long-term. This new RPS Signature Programs offering will be available Nationwide (except AK) on A- (Excellent) AM Best Rating, Financial Size Category XI, and will provide Lawyers Professional Liability (LPL) coverage for small- to mid-sized Law Firms. Highlights of the Lawyers Professional Liability Program are:  1 to 50 Attorney Firms  Broad Definition of Professional Services  Claims Expenses in addition to the limit of liability available  First Dollar Defense deductible available  50% reduction for agreement to use mediation and the claim is settled at mediation (Up to $25,000)  Per Claim and Aggregate deductible options  Relaxed Consent to Settle Clause 50/50  Limits of Liability up to $5,000,000 available  Pre-Claim Assistance “RPS Signature Programs has more than 35 years of underwriting experience with the primary focus on this line of business. We are using our expertise in professional liability writing $30,000,000 in premium placed this past year, which means that when you have questions, we have answers,” said Adrienne Woodhull, area president with RPS Signature Programs. Jeff Consolino, President and Chief Executive Officer of Core Specialty commented, “When Core Specialty completed the recapitalization of StarStone U.S. Holdings, Inc. on November 30, 2020, we established the Errors; Omissions Professional Liability Division and recruited Jeff Jacobs as Division President to increase our focus on these product lines.  We believe many professional liability classes are continuing to see strong opportunity after changes in appetite in the admitted market created a void that has not yet been filled by E&S markets.” About Core Specialty Core Specialty offers a diversified range of property and casualty insurance products for small to mid-sized businesses. From underwriting offices spanning the U.S., the Company focuses on niche markets, local distribution, and superior underwriting knowledge, offering traditional as well as innovative insurance solutions to meet the needs of its customers and brokers. Core Specialty is an insurance holding company operating through StarStone Specialty Insurance Company, a U.S. excess and surplus lines insurer, and StarStone National Insurance Company, a U.S. admitted markets insurer. The Company is rated A- (Excellent) by AM Best. For further information about Core Specialty, please visit www.corespecialty.com. About RPS Signature Program RPS Signature Programs manages a variety of specialized programs on behalf of highly rated carriers, offering proprietary insurance solutions in niche markets. Headquartered in Rolling Meadows, Illinois, RPS Signature Programs is a division of Risk Placement Services, one of the nation’s largest specialty insurance product distributors. Follow RPS on Facebook, Twitter, LinkedIn, Instagram and YouTube. For more information visit: www.RPSins.com/SignaturePrograms Press Contact: Sam Reinhardt Associate Vice President Prosek Partners +1 646 818 9244 sreinhardt@prosek.com  
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    Casualty Market Not as Painful as 2020 but Rates Continue to Rise: RPS

    ROLLING MEADOWS, IL – Sept. 15, 2021 – Rates will continue to rise in the Casualty market through the remainder of 2021 and into 2022, but insureds should expect a less-challenging market than last year’s, according to the mid-year U.S. Casualty Market Outlook released by Risk Placement Services (RPS), the E&S wholesale broker and managing general agency. “The Casualty market landscape has improved since 2020, but rates continue to firm, primarily driven by the unpredictability of the Excess market,” said Bill Wilkinson, President, National Casualty Brokerage, RPS. Rate increases in the Umbrella/Excess market are currently averaging 15%-25%, which is an improvement from hikes of 30% or more for high-hazard segments in 2020. But when building Excess towers, more upward pricing pressure is being seen in a tower than there is in the lead layer. Additionally, more carriers are needed to reach the tower’s overall limit. A welcome change from last year is new competition coming into the Excess market. These new entrants are tempering rate increases. But another factor continues to impact rates: nuclear verdicts. These multi-million dollar jury awards are driven by strong anti-corporate sentiment and private equity funding of third-party litigation. Whether or not negligence exists seems to be ambiguous in today’s litigation environment, Wilkinson said. The Outlook found E&S Casualty to be a tale of two markets at midyear. “For low-hazard, well-performing accounts, competitively priced renewals are available with anywhere from 5%-10% year-over-year increases,” said Adam Mazan, Area President, RPS. “The biggest challenge in the E&S marketplace is with mid-to high-hazard accounts, where carriers continue to push rates and are assessing whether they want to write risks with specific exposures at any price, or focus on low-hazard accounts where they can build their book.” Wilkinson added: “Knowledge of loss-leading exposures and fear of the unknown will continue to drive underwriting decisions in the Casualty market and limit available capacity, especially in certain sectors like Habitational, and those insureds with heavy auto exposures.”   Other findings from the U.S. Casualty Market Outlook: Mid-Year 2021 include: Habitational is the firmest market right now, beset by rate increases and diminished capacity due to the rise in Assault & Battery (A&B) and habitability claims, as well as, increased costs from typical slip and fall claims. Some carriers are choosing to no longer write General Liability (GL) and Excess coverage because of the influx of losses.  In Construction, many carriers are requiring higher GL limits and an Auto attachment of $2M, $5M, or more. As a result, the use of an auto buffer placement is becoming more commonplace.  New York Construction remains firm with losses driving rate pressure. Capacity continues to be restricted for GL and even more so on Excess layers, as only a limited pool of carriers are willing to write in New York due to its Labor Laws, which place absolute liability on the employer as well as the owner and general contractor. Contractors Pollution Liability capacity continues to decrease and term limits tighten, but coverages are still relatively inexpensive. Energy-construction risks, however, are more difficult to place. Energy Casualty losses continue to be steady, particularly for auto exposures, with rate increases averaging 10%-15%. General Liability is experiencing the least amount of rate pressure, with increases averaging under 5%. For Sports/Entertainment and Bars/Restaurants, Excess rate increases are lower than they were in 2019 and 2020, but they will continue their upward trend, with an average 5%-7% increase for well-performing businesses and entities. Religious sector carriers that still offer Sexual Abuse & Molestation coverage have moved from occurrence to claims-made coverage, and require higher minimum premiums ranging from at least $100,000 to upward of $200,000. The full report is available at the following link: U.S. Casualty Market Outlook: Mid-Year 2021. ----- About Risk Placement Services Risk Placement Services (RPS) is one of the nation’s largest specialty insurance products distributors, offering valuable solutions in wholesale brokerage, binding authority, programs, and standard lines, plus specialized auto through its Pronto Insurance brand. Headquartered in Rolling Meadows, Illinois, RPS has more than 80 offices nationwide. For more information, visit RPSins.com. Follow RPS on Facebook, Twitter, LinkedIn, Instagram and YouTube. Media Contact: Sara Carlson 630-605-6935 sara_carlson@rpsins.com
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    RPS Launches New Insurance Agents and Brokers Program with ISMIE Indemnity Company

    E&S wholesale broker and managing general agency Risk Placement Services (RPS) today announced the launch of a new Insurance Agents and Brokers Professional Liability (PL) program with ISMIE Indemnity Company, a subsidiary of ISMIE Mutual Insurance Company. ISMIE has expanded its core Medical Professional Liability (MPL) insurance to develop programs for non-medical professional customer groups, including insurance agents and brokers. ISMIE’s PL business will be distributed only through qualified managing general agents (MGAs) such as RPS that have unmatched expertise in their programs. This new RPS Signature Programs offering provides Errors and Omissions (E&O) coverage for small- to mid-sized insurance agencies, wholesalers and MGAs. “Insurance Agents and Brokers E&O coverage is a key contributor to the longevity of an agency. This new RPS program provides industry professionals the confidence of knowing their unique E&O exposures are covered should a claim occur,” said Adrienne Woodhull, area president with RPS. “The combination of RPS’ profound knowledge and strong track record in this market and our unique coverage and services makes this product the best choice for independent agents and brokers,” said Wayne de Nazarie, ISMIE Executive Vice President. Highlights of the Insurance Agents and Brokers Professional Liability Program are: First-dollar defense coverage available Modified coinsurance hammer clause (up to 80/20) Unlimited tail coverage A liberalization clause Qualifying subsidiaries are automatically included Broad definition of covered professional services Deductible is aggregated at twice the per-claim dollar amount Insolvency exclusion carve-back for the insured, if the insurance was placed with an entity that held a B+ or better A.M. Best rating or an A or higher Demotech rating, or if the entity was guaranteed or operated by a governmental body The Insurance Agents and Brokers Professional Liability Program offers limits of $500,000 to $5 million and is currently available nationwide. About RPS Signature Programs RPS Signature Programs manages a variety of specialized programs on behalf of highly rated carriers, offering proprietary insurance solutions in niche markets. Headquartered in Rolling Meadows, Illinois, RPS Signature Programs is a division of Risk Placement Services, one of the nation’s largest specialty insurance product distributors. Follow RPS on Facebook, Twitter, LinkedIn, Instagram and YouTube. About ISMIE Mutual Insurance Company ISMIE is an established and successful policyholder-owned insurer focused on providing outstanding products and services that meet the changing needs of physicians and healthcare professionals across all practice types and settings. Founded in 1976 and headquartered in Chicago, IL, ISMIE has for 45 years led the Illinois MPL market and is recognized across the country for delivering protection, quality, service and value to its customers. Bill McLaughlin, ISMIE Vice President, Product Diversification will be the lead working with RPS on this exciting new initiative. Follow ISMIE on Facebook, Twitter, LinkedIn and YouTube.  
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    Market Remains Turbulent for Most Lines of Management & Professional Liability: Risk Placement Services’ 2021 Market Outlook

    Media Contact: Sara Carlson 630-605-6935 sara_carlson@rpsins.com   Market Remains Turbulent for Most Lines of Management & Professional Liability: Risk Placement Services’ 2021 Market Outlook Rise of SPACs adds complexity to D&O Liability placements Cyber Liability market still in flux Allied Healthcare Professional Liability undergoes market correction ROLLING MEADOWS, IL – May 4, 2021 – In the first half of 2021, corporate bankruptcies, widespread layoffs and cyber breaches stemming from the COVID-19 pandemic are compounding the distress that was already plaguing the Management and Professional Liability Market in 2020. Insurance carriers writing nearly every line of business in this specialized market segment are raising premiums and rates, reducing capacity and more closely scrutinizing accounts, according to the 2021 Management and Professional Liability Market Outlook by Risk Placement Services (RPS), the E&S wholesale broker and managing general agency. “Management and Professional Liability carriers are more focused than ever on profitability over growth, due to many years of depressed pricing and growing claims and then compounded by the pandemic,” said Manny Cho, Executive Vice President, Executive Lines, RPS. “As a result, Public and Private Company Directors & Officers (D&O) and Cyber Liability lines of business are seeing dramatic changes in pricing, terms and conditions. And this trend is expected to continue throughout 2021 and into 2022,” Cho added. Management Liability The D&O market for mature companies appears to be stabilizing, but the market remains challenging for companies that are going public. This sector has been exacerbated by the rise of special-purpose acquisition corporations (SPAC) to facilitate initial public offerings and the use of private investment in a public entity – which adds more layers of underwriting complexity to already complex transactions. “The SPAC market and potential future litigation could cause some major disruption to Public Company D&O – a line of business that is finally beginning to settle down in certain areas as we see new competition and new capacity for excess layers come into the market,” Cho said. “But that could change in an instant if litigation trends worsen and underwriters continue to focus on profitable results.” In the Private Company D&O market, underwriters are requiring unaudited financial statements and a COVID-19 supplemental in most cases, as they try to uncover any potential liquidity issues that could lead to future bankruptcies. Minimum retentions are growing four- to fivefold, and capacity is being reduced, requiring the use of multiple carriers to reach the insured’s desired limits. In the Cyber Liability market, underwriters are imposing sublimits, coinsurance and exclusions for cyber extortion in response to the escalation in attacks by hackers exploiting work-from-home network vulnerabilities during the pandemic. “Cyber is a line of business that is expected to be in flux at least through the end of 2021 and beyond,” Cho said. Professional Liability Professional Liability highlights from the RPS Market Outlook include: While pricing remains relatively flat in the admitted market for Lawyers’ Professional Liability coverage, carriers are reducing capacity, especially for firms with 10 or fewer attorneys. The Allied Healthcare Professional Liability market is undergoing a market correction in 2021, with primary rate increases averaging about 15%, and excess premiums growing from 50% of primary premium to 75% or 80%. The Professional Liability market for Insurance Agents and Brokers is also tightening in response to the recent surge in natural disasters. In response to insurers denying coverage for many professional liability claims, policyholders are filing E&O claims against their insurance agent. To navigate this turbulent market, Cho advises agents and brokers to set expectations upfront with their clients. “Underwriters are inundated with submissions, so it is critical to provide them with complete and thorough information to best position your clients to secure more favorable prices and terms under these challenging market conditions.” To obtain a copy of the RPS Market Outlook, click on the following link: RPS 2021 Management and Professional Liability Market Outlook. About Risk Placement Services Risk Placement Services (RPS) is one of the nation’s largest specialty insurance products distributors, offering valuable solutions in wholesale brokerage, binding authority, programs, and standard lines, plus specialized auto through its Pronto Insurance brand. Headquartered in Rolling Meadows, Illinois, RPS has more than 80 offices nationwide. For more information, visit RPSins.com. Follow RPS on Facebook, Twitter, LinkedIn, Instagram and YouTube.
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