Independent insurance agents and brokers are encountering a surplus of emerging commercial risks this year, according to a new report from technology provider EvoSure.
EvoSure’s Market Finder tool, which matches risk characteristics with appropriate markets, collects information on broker searches. A team of researchers evaluated the top 100 risks of 2015 submitted by several thousand agents and brokers and disclosed to five commercial risks for which brokers most often sought coverage during the first half of the year.
They include:
1. Fracking
Hydraulic fracturing has been a tremendous boost to the American economy and reduced dependence on foreign oil. Agents seeking cover for fracking-related risks are particularly requesting appetite for vehicles transporting fracking materials.
EvoSure CEO Matt Foran notes that global corporate carriers with a separate energy practice take much of the market share, though wholesalers and specialty carriers with a focus on energy are increasing their risk appetite.
2. Medical Marijuana
As recreational and medical marijuana continues to be legalized in new states, cannabis risks multiply – particularly ones affecting research and dispensaries.
“In addition to markets that are traditionally strong in healthcare and biotech, agents are onnecting with numerous programs specifically tailored to medical marijuana businesses as well as wholesale markets that are particularly open to the workers comp exposures,” said Foran.
3. Micro-Drones
News on the use of drones by retailers and insurance companies has reached headlines almost daily, but smaller companies also seem to be interested in the technology, judging by broker searches.
The first drone coverage search conducted through Market Search was seeking a business owner’s policy. Currently, several mainstay carriers have updated their appetite guides to indicate interest in unmanned aircraft risk in the future.
4. Senior Living Services and Facilities
As Baby Boomers continue to age, the demand for senior living facilities and services continue to grow.
Brokers are searching for insurance packages that include property and senior service-related monoline auto. However, while many mid-market carriers provide dedicated coverages for senior living services, standard markets are pulling away from such risks.
EvoSure anticipates that will changes as risk management for these companies improves, particularly with regard to loading and unloading practices.
5. A Single, Four-Legged Farm Animal
While emerging risks related to technology, an expanding aging population and a lax regulatory environment are creating new and dynamic risks, brokers are still seeking coverage for traditional assets.
“An animal mortality policy search sends us – even momentarily – back to a simpler time,” said Foran.
