Brokers who can “assess the true value of coverage” will be key
The environmental insurance market remains robust with stable pricing for most buyers, according to insights from Kate Dietrich, vice president and senior environmental specialist team lead at Lockton.
However, insurers are deploying capital with caution in light of emerging hazards and a challenging regulatory environment.
The environmental insurance market is primarily driven by two key products: Pollution Legal Liability (PLL), which covers fixed facilities like owned or leased properties, and Contractor’s Pollution Liability (CPL), designed for contractors working on job sites.
Dietrich said that median pricing for PLL increased by 1.4% in the first quarter of 2024, based on Lockton’s data. Over recent quarters, PLL rate changes have been modest, typically ranging from flat to 5%, as competitive pressures have cur