Press Release
4/30/12
KANSAS CITY, Mo., April 30, 2012 /PRNewswire via COMTEX/ -- Chief financial officers, risk managers, and other commercial insurance decision makers face a tougher pricing environment in the coming months in the property and casualty insurance market, according to the latest Lockton Market Update.
Prices for many risks are flat, and commercial insurance buyers face tougher underwriting and rising prices in many markets. The new package of market updates from insurance broker Lockton outlines the market dynamics and approaches to mitigate insurance cost increases.
Casualty Insurance Market "Although casualty insurance capacity is still strong, its impact on pricing continues to fade," Lockton casualty experts Jesse Olsen and Stacy Seaburg say. "Instead, carriers are focused on return on capital." Many insurance carriers are attempting to raise prices and stiffen underwriting guidelines to increase returns to stakeholders, meaning tougher renewal conversations for insurance buyers.
Commercial Property Insurance Market Lockton's Jim Rubel writes that the commercial property market is not yet hard, where capacity is not available at any price. "However, it has become a very difficult market for buyers of property-catastrophe insurance--a market where capacity is available, but only at a price."
Rubel says insurance buyers who begin the renewal process early and provide underwriters with plenty of detailed information will be in a position to minimize the potential for significant price increases. Lockton Full Report
Monday, April 30, 2012
Friday, April 6, 2012
Commercial Property/Casualty Rates Continue Moving Up
Business Insurance
By Mark Hofmann
April 5, 2012
Commercial property/casualty insurance rates increased an average of 3% in March compared with a year earlier, MarketScout reported Thursday.
According to the Dallas-based electronic insurance exchange, workers compensation and commercial property experienced the greatest rate increases at 4% each.
No line of insurance tracked by MarketScout reported a rate decrease, although rates for fiduciary and crime insurance remained flat compared with those of a year earlier.
Among industry classes, manufacturing, contracting, transportation and energy each experienced 3% rate increases; service and habitational accounts registered 2% increases; and public entities experienced the smallest increase at 1%.
“Our results continue to show a slow and steady path towards rate increases in all segments,” whether by line of coverage, industry group or account size, MarketScout CEO Richard Kerr said in a statement.
Vigilant Transport: Another factor driving rate increases is the vulnerability to rising interest rates.
"Interest rate increases could result in a capital loss of between $40 billion and $60 billion on the industry's $874 billion bond portfolio in 2012, or 7% to 11% of its equity capital base,"
By Mark Hofmann
April 5, 2012
Commercial property/casualty insurance rates increased an average of 3% in March compared with a year earlier, MarketScout reported Thursday.
According to the Dallas-based electronic insurance exchange, workers compensation and commercial property experienced the greatest rate increases at 4% each.
No line of insurance tracked by MarketScout reported a rate decrease, although rates for fiduciary and crime insurance remained flat compared with those of a year earlier.
Among industry classes, manufacturing, contracting, transportation and energy each experienced 3% rate increases; service and habitational accounts registered 2% increases; and public entities experienced the smallest increase at 1%.
“Our results continue to show a slow and steady path towards rate increases in all segments,” whether by line of coverage, industry group or account size, MarketScout CEO Richard Kerr said in a statement.
Vigilant Transport: Another factor driving rate increases is the vulnerability to rising interest rates.
"Interest rate increases could result in a capital loss of between $40 billion and $60 billion on the industry's $874 billion bond portfolio in 2012, or 7% to 11% of its equity capital base,"
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