Kiss Your Three Year Policy Goodbye

For many years banks under $2B in assets (and some larger) have been able to get three-year renewals on their bond and management liability. A three-year policy saves everyone time and angst.

Well, all good things come to an end.

In the past week I have heard of two insurers who are not renewing policies on a three-year basis. I expect other insurers will follow along.

The insurance marketplace for banks has been changing over the past nine months – premiums are going up. Add the uncertainty of Covid-19 and underwriters are nervous.

I have started asking insurers early in the renewal process their position on a three-year renewal. I plan to flesh-out early the underwriter’s intent. I figure I will be fighting more and more for a three-year term.

More when I know it.