Brokers Association Says Prices Moderate Commercial property-casualty prices are beginning to moderate and the insurance market is beginning to stabilize, according to a report released by the Council of Insurance Agents & Brokers.
The Washington, D.C.-based organizations first-quarter 2003 Market Index survey found that while brokers are still seeing premium increases on accounts, the increases are not as dramatic as in the past.
Overall, across all three account categories surveyed (small, medium and large), 66 percent of the accounts saw premium increases of between 1 and 20 percent. Only 14 percent saw increases of between 20 to 30 percent. Larger increases were at three percent or less.
These figures compare to the fourth quarter of 2002, where for all three account categories surveyed, 52 percent saw increases of between 1 to 20 percent, and 26 percent of all three accounts saw increases ranging between 20 to 30 percent.
Breaking down the overall first-quarter survey results by size-of-account categories, 70 percent of medium-size accounts, with fees and commission of between $25,000 and $100,000, saw premium increases in the range between 1 and 20 percent. Forty-six percent were on the high end of increases–between 10 and 20 percentwith 24 percent seeing single-digit premium jumps.
Looking at small accounts, with fees and commissions of less than $25,000, 66 percent saw increases between 1 and 20 percent. When broken down further, 33 percent had increases between 1 and 10 percent. An equal percentage saw increases ranging between 10 and 20 percent.
Among large accounts, with more than $100,000 in fees and commissions, 61 percent saw increases in the 1 to 20 percent range. Of this figure, 42 percent saw increases in the 10 to 20 percent range, while 19 percent saw increases ranging between 1 and 10 percent.
Ken A. Crerar, president of CIAB, said the survey suggests that the market is beginning to stabilize, especially in the Northeast, where rates had increased the fastest.
Additional information is available at www.ciab.com.
Reproduced from National Underwriter Edition, April 28, 2003. Copyright 2003 by The National Underwriter Company in the serial publication. All rights reserved. Copyright in this article as an independent work may be held by the author.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
