“If underwriters do not suffer significant deterioration in their book of business by November 2005, property rates will begin to decrease,” he added, noting that large losses from hurricanes and other cataclysmic events have less of an impact on “technologically-savvy underwriters.”

“Today, most insurers utilize some type of geo-coding program to monitor their overall book of business,” he said. “This software can track a myriad of exposures as related to an insurer's book of business, thereby notifying the insurer when they exceed pre-selected maximum desired exposures in a particular geographic location.”

Mr. Kerr also noted that offshore energy underwriters are “nervous about the increase in hurricane activity in the Gulf of Mexico. Smart buyers are maintaining as much coverage as possible because, as of late, it's money in the bank. Renewals on offshore energy risks are up as much as 15 percent.”

He predicted that “underwriters will relax their tough position if the 2005 hurricane season is not too difficult.”

The barometer is based on MarketScout's own findings, supported by surveys conducted by The National Alliance for Education and Research.

Callout:

D&O, coastal property and offshore energy accounts are only lines that beat the trend.