R&W cover demand drives price hikes: CAC Specialty
According to a report from CAC Specialty, a subsidiary of brokerage company Cobbs Allen, continued demand for representation and warranties in mergers and acquisitions that began in late 2020 has resulted in price increases. Interest rates fell towards the middle of the year, along with a slowdown in mergers and acquisitions, but recovered later in the year. "What no one saw coming was the sustained period of unprecedented demand that began towards the end of 2020 - and which largely continued through the first quarter of 2021," said CAC. By the end of the year "the rates rose dramatically, which is due to the historically high demand due to a massive M&A upswing and a relatively static supply." Rates in the first quarter of 2021 are higher than a year ago "when M&A went full steam ahead," CAC said. The online rates - premium divided by limits - reported for most medium-sized transactions have decreased by 3%, with exceptions depending on...