E&S/Specialty

As cyber risks increasingly become a top-of-mind issue for a wide spectrum of businesses, the market for policies is wide openand the competition intense.

A nonprofit organization and its directors and officers face similar risks as a for-profit board of directors, and might have more to lose. But more and more, for a variety of reasons, nonprofits seem to realize the exposures.

ACE Limited says 2011 fourth-quarter net income declined 25 percent to $750 million, as catastrophe losses more than doubled compared to the 2010 fourth quarter, when net income was $1 billion.

Greenwich, Conn.-based insurer W.R. Berkley says 2011 fourth-quarter net income was down 7 percent, but its chief executive says rate increases are taking hold and 2012 should be a better year.

Although insurance capacity for catastrophic perils is still available and affordable, some experts say last years huge losses already are driving up insurance costs and could shrink capacity, federal financial assistance or both.

Environmental experts agree that 2012 will be the year of the rate increase for pollution-related coverages. This presents both challenges and opportunities to independent agents, who must help customers understand the realities of the marketplace.