COMMERCIAL P/C MARKET STABILIZING’

While rates continued their upward spiral in 2002, according to the First Quarter 2003 Market Index survey by The Council of Insurance Agents & Brokers, the commercial property/casualty insurance marketplace is beginning to stabilize. About two-thirds of small, medium and large accounts are still experiencing average increases of up to 20 percent for all lines of insurance. But unlike previous surveys, respondents said only a small proportion of their accounts had rate hikes in the 20 to 30 percent range. Only a small percentage of accounts saw rates go up more than that, while 12 percent of the small accounts and 8 percent of both medium and large accounts experienced no change at all in their commercial P/C premiums for renewals during the survey period. Business interruption and commercial property showed the greatest moderation, with 16 percent of respondents reporting that premiums for those lines either were holding steady or dropping slightly. Conversely, medical malpractice premiums increased the most, with about one-third of the accounts seeing rate hikes of from 30-100 percent, and an additional 8 percent rising by more than 100 percent. Commercial lines experiencing premium increases in the 30-50 percent range were umbrella policies, construction risks and D&O policies.