Evan Rosenberg, senior vice president of Warren, N.J.-based Chubb, also said that insurers need to say no to further decreases, but asked brokers to help carriers understand what client expectations are. He said brokers do a good job of finding out what the clients want, and insurers could use better feedback in that areas.

Michael Smith, president of the executive liability unit of Chartis in New York, also called on brokers to discuss more than price with clients. He said brokers should do a better job of explaining service aspects of different insurers, such as how they handle claims, or whether they have experience handling claims in a given line such as D&O.

Panel moderator Lou Ann Layton, managing director of Marsh Inc., took exception to any finger pointing at brokers for the prolonged soft market. “You all agree it stops with you,” she said, “but then you get around to the broker.”

She stated that there are very few industries where distribution dictates the price. “We all have to take some responsibility,” she said, “but I think the [ultimate] responsibility has to lie with you guys [the carriers].”

As for when the soft market might end, Mr. Rafferty said he does not believe the industry will collectively have enough pricing discipline absent a meaningful spike in claims frequency.

Mr. Rosenberg said he would love to be able to say rates will flatten next week, but he pointed to the level of excess capital and the relatively weak catastrophe year in 2009 as factors keeping prices down.

For their part, buyers of D&O policies demonstrated in an earlier panel that they are aware of the importance of claims handling, as mentioned by Mr. Smith.

During the panel, which analyzed the buyers' perspective, Carl Metzger, a partner at Boston-based Goodwin Procter LLP, said claims handling is very important to risk managers when selecting an insurer.

Ira Weisman, managing director, risk manager of Cerberus Capital Management, L.P. in New York, agreed and said, “Handling claims will go a long way.”

During the carrier panel, Chubb's Mr. Rosenberg expressed disappointment that so many accounts are being moved after the carrier pays a big loss.

He said D&O and errors and omissions coverages are experience-rated products. After an insurer pays for a loss, carriers should be able to rewrite the account with a higher premium to earn some of that loss back, he said.

In the earlier buyers' panel, Diane Askwyth, a professional risk manager in Chatham, N.J., said there is a sense of loyalty among buyers to help carriers that have paid out on a claim.

Regarding how buyers perceive their broker partners, Mr. Metzger said brokers competing for business should make sure they can deliver on the promises they make.

Mr. Weisman added that “brokers have a tendency to overpromise.” He also said it is up to brokers to be honest about what they can do for their clients.

Ms. Askwyth said brokers have an advantage if they can bring “intelligence capital” to the table, such as models and white papers. “But modeling has to be tailored to me and my business,” she noted. “Generic information is not useful.”

During a request for proposal (RFP) process, Ms. Askwyth said incumbent brokers definitely have an advantage with respect to retaining business unless they have not performed.

But Mr. Weisman pointed out that incumbents cannot go into the process thinking they will automatically get the business.