The Risk and Insurance Managers Society (RIMS) says commercial insurance buyers in the US reported many insurance premiums showed signs of stabilising in the third quarter of 2003. The annual RIMS Benchmark Survey of US market conditions says property insurance, fiduciary liability coverage and even directors' and officers' liability – which had been experiencing astronomic increases – faced only comparatively moderate rate hikes in the third quarter.

Excess liability and workers’ compensation continue to experience comparatively strong increases to historical changes. Premiums for most of these insurance lines increased by 3-32% last quarter over last year’s rates, compared to the rate increases last spring, which were as much as 250% over the prior year. Retention level increases were 8-25% except in fiduciary liability coverage, where increases averaged 250%.

The RIMS report says this suggests insurers are pushing retentions higher to reduce loss ratios even as they maintain hard market levels of premium rates.