US premiums continue to fall despite credit crunch
Two major hurricanes in the US and the global financial crisis have failed to alter the soft commercial insurance market in the third quarter.
The latest Risk and Insurance Management Society (RIMS) Benchmark Survey shows general liability premiums have fallen 9.6% – the largest single quarterly drop since 2005 – and property premiums are down 8.5%.
The decline in premiums comes despite the $US20 billion ($30.6 billion) in insured losses from hurricanes Gustav and Ike.
D&O premiums fell by just 2.1% thanks to rising claims triggered by the meltdown of the subprime mortgage market, and workers’ compensation premiums fell just 0.6%.
RIMS board member John Phelps says it is clear premiums cannot continue to fall at this rate, “especially with the global economy in chaos”.
The latest Risk and Insurance Management Society (RIMS) Benchmark Survey shows general liability premiums have fallen 9.6% – the largest single quarterly drop since 2005 – and property premiums are down 8.5%.
The decline in premiums comes despite the $US20 billion ($30.6 billion) in insured losses from hurricanes Gustav and Ike.
D&O premiums fell by just 2.1% thanks to rising claims triggered by the meltdown of the subprime mortgage market, and workers’ compensation premiums fell just 0.6%.
RIMS board member John Phelps says it is clear premiums cannot continue to fall at this rate, “especially with the global economy in chaos”.