A new year is upon us, which means the negotiation of rates at renewal has been on the minds of many risk managers and their brokers. If the sentiment expressed this time last year was that “flat is the new 'win',” things look to be turning out similarly this time around, with a few key exceptions—and a few trends to be mindful of as the year unfolds.

Gary Pearce, vice president of the Risk Management Group for workforce and staffing solutions firm Kelly Services, Inc., noted that the company's primary casualty coverage is a Jan. 1 renewal. Speaking to NU in early December, he expected to renew at unchanged rates after enjoying a “significant” rate reduction in 2014. Pearce did not identify any notable changes in the terms and conditions of the company's policies this time around.

Pearce observed that he's seeing a slight increase in claim activity, but one that's realistically consistent to Kelly Services' business growth—and noted that frequency rates have shown steady declines for several years. “We are, however, seeing a disturbing increase in the frequency of relatively severe claims, which seems to be a widespread phenomenon, according to our TPA,” he adds.

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Rosalie Donlon

Rosalie Donlon is the editor in chief of ALM's insurance and tax publications, including NU Property & Casualty magazine and NU PropertyCasualty360.com. You can contact her at [email protected].