The desire to have the coverage has not decreased, despite the premium hikes. Ninety-seven percent of those surveyed in the U.S. said they purchased coverage. This figure is consistent with 2002 and 2001 figures.

There was some drop in capacity going from $1.5 billion in 2002 to $1.35 billion in 2003. This is the lowest capacity level since 1997, when it stood at $1.35 billion before jumping to $1.5 billion the following year.

As rates increased, the survey found, policy limits decreased and deductibles and retentions increased. The report said technology, transportation, communications and utilities business classes witnessed the greatest decrease in policy limits. The report said that 56 percent of U.S. participants with renewals in the second half of 2002 reported increases in their deductibles or retentions.

Despite the increases, there are signs of stabilization, the report continued. The number of participants who saw increases in premium in the third quarter of 2003 fell to 62 percent compared to 76 percent who saw increases in the third quarter of 2002.

Also, 27 percent said they increased deductibles or retentions in the third quarter of 2003 compared to 55 percent in 2002.

More information about Tillinghast and the report are available at: www.towersperrin.com/tillinghast.