We are in the middle of researching our Tech E&O Market Survey 2011 (to be released late February), but we’ll take a timeout to post some thoughts about the upcoming year:
- Premium growth will resume now that the tech sector has gotten back on its feet, following the Great Recession. Exposure base increases will help, as will new insureds.
- Privacy risk worries will drive demands for proof of coverage by customers and clients. Certificates of insurance will need to clearly show how this coverage applies to privacy risk.
- Insureds will be signing a lot of contracts that require E&O insurance, and the word privacy will be in most of them.
- International growth will be particularly strong, driven by – you guessed it – client concerns about privacy risk.
- Tech services providers will be caught up in an increasing number of privacy-related losses, even if they didn’t cause the loss.
- Rate competition will continue, with no relief in sight.