According to survey, Commercial Insurance still in a hard market. (Marketplace: Property/Casualty).

An industry survey shows commercial insurance is still in a hard market, with premium increases of as much as 50% and tighter policy restrictions. Looking at insurers--which have been buffeted by terrorist attacks, stock-market woes and increasing environmental-hazard claims--some of the top insurance brokers have expressed fear that the industry's solvency might be in trouble, according to the 2002 Commercial Insurance Market Index survey completed by the Council of Insurance Agents & Brokers.

According to the survey, premium prices across all lines of commercial business continue to increase, "a repeat of the familiar post-9/11 story of higher rates, tougher terms and conditions and lower capacity," Ken A. Crerar, the council's president, said.

Responses from brokers showed more than 60% of medium-sized and large accounts continued to experience price increases from 20% to 50%, while some brokers said half their small accounts saw premiums rise 10% to 20%, and 20% more went up between 20% and 30%, consistent with previous "hard market" findings, the survey said.

Also noted in the survey, 86% of the respondents--who comprise some of the top 1% of the nation's largest brokers--have concerns about insurance carrier solvency, the survey said.