RIMS survey: North American premiums continue to fall
It’s still a buyer’s market for commercial insurance in North America, as average premiums continued to fall among all major lines during the second quarter.
The results were revealed last week in the latest Risk & Insurance Management Society (RIMS) benchmark survey.
It showed that premiums for directors’ and officers’ (D&O) insurance continue to fall, dropping 6.4% during the quarter.
The RIMS authors noted that although D&O claims related to the subprime mortgage crisis continue to mount, so far only financial and real estate firms with subprime exposure were exposed to price hikes.
Property insurance premiums fell by an average of 6.1% while general liability premiums declined by an average of almost 5%.
The average workers’ compensation premium fell just 1.7% in the second quarter after an unexpected 11% drop in the first three months.
RIMS board member John Phelps says North America is currently in the hurricane season and it may only take a bad storm to end the soft market conditions.
If weather remains benign the soft market is projected to continue at least until the end of the year.
A survey by US insurance exchange MarketScout has concurred with the RIMS study. MarketScout Chairman Richard Kerr says the subprime crisis continues to create concerns despite massive equity writedowns by major insurers.
“While these losses are not directly related to insurance underwriting results, they ultimately will impact insurers’ appetite to continue rate cuts,” he said.
Across the classes, commercial property lines were down 14% last month, business interruption fell 9%, general liability was down 11%, workers’ compensation declined 7%, professional liability dropped 9%, and crime fell 10%.
The results were revealed last week in the latest Risk & Insurance Management Society (RIMS) benchmark survey.
It showed that premiums for directors’ and officers’ (D&O) insurance continue to fall, dropping 6.4% during the quarter.
The RIMS authors noted that although D&O claims related to the subprime mortgage crisis continue to mount, so far only financial and real estate firms with subprime exposure were exposed to price hikes.
Property insurance premiums fell by an average of 6.1% while general liability premiums declined by an average of almost 5%.
The average workers’ compensation premium fell just 1.7% in the second quarter after an unexpected 11% drop in the first three months.
RIMS board member John Phelps says North America is currently in the hurricane season and it may only take a bad storm to end the soft market conditions.
If weather remains benign the soft market is projected to continue at least until the end of the year.
A survey by US insurance exchange MarketScout has concurred with the RIMS study. MarketScout Chairman Richard Kerr says the subprime crisis continues to create concerns despite massive equity writedowns by major insurers.
“While these losses are not directly related to insurance underwriting results, they ultimately will impact insurers’ appetite to continue rate cuts,” he said.
Across the classes, commercial property lines were down 14% last month, business interruption fell 9%, general liability was down 11%, workers’ compensation declined 7%, professional liability dropped 9%, and crime fell 10%.