Commercial P/C Market Softens More in Second Quarter, Council Survey Shows.WASHINGTON Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. -- The commercial property/casualty market continued to soften during the second quarter of 2005, with commercial insurance brokers reporting that insurers are aggressively competing for new business and fighting hard to keep their renewals. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the Commercial Property/Casualty Market Index sponsored by The Council of Insurance Agents & Brokers, the vast majority of small, medium and large accounts saw their premium rates drop during the second quarter. The Council represents the nation's leading commercial insurance brokers who annually write 80 percent of the property/casualty premiums in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and administer billions of dollars in employee benefits accounts. Brokers responding to the survey said 49 percent of the small accounts experienced premium decreases of 1-10 percent, with an additional 16 percent down 10-20 percent. For medium and large accounts, the decreases were more dramatic, with 41 percent of medium accounts down 1-10 percent, and 44 percent down 10-20 percent, and 34 percent of large accounts down 1-10 percent, 39 percent down 10-20 percent and 12 percent down between 20-30 percent. An analysis of The Council survey data by Lehman Brothers Lehman Brothers Holdings Inc. (NYSE: LEH), founded in 1850, is a diversified, global financial services firm. It is a participant in investment banking, equity and fixed income sales, research and trading, investment management, private equity, and private banking. showed premiums for the average commercial account declined 9.7 percent during the quarter. The average small commercial account experienced a 5.6 percent decrease in rates; the average mid-sized account premium was down 11.4 percent; and the average large account premium decreased by 12 percent. The same decrease in premium rates was apparent across most lines of commercial insurance during the second quarter, although brokers said they still were experiencing some difficulty with surety bonds surety bond An insurance fee required before a duplicate security is issued to replace one that has been lost. The fee is approximately 4% of the market value of the security to be replaced. as well as director's and officer's insurance, medical malpractice Improper, unskilled, or negligent treatment of a patient by a physician, dentist, nurse, pharmacist, or other health care professional. coverage and habitational risks such as residential construction. '"Do whatever it takes to keep your renewals' is the message underwriters are getting from management and passing it onto us," a broker in the Southwest Southwest or south west is the ordinal direction halfway between south and west, the opposite of northeast. Southwest or south west may also refer to:
n. An instinctive physical desire, as for food or sex. Appetite The natural instinctive desire for food. for, they work very hard to keep - reducing the rate, eliminating deductibles, easing loss control issues, etc." "Many accounts that had a hard time finding a home have multiple insurers wanting them," agreed a broker from the Southeast. Brokers from all regions of the country reported a heightened appetite for new business, and several of the responses suggested that less-than-optimal financial figures from the first quarter could be prompting carriers to go after market share more aggressively. "With many experiencing anemic anemic pertaining to anemia. first quarter premium growth, competition on price has accelerated," said a broker in the Northeast. Several brokers said regional markets are being particularly aggressive, especially on middle market business. The survey also showed a slight increase in the take-up of terrorism insurance Terrorism insurance is insurance purchased by property owners to cover their potential losses and liabilities that might occur due to terrorist activities. It is considered to be a difficult product for insurance companies, as the odds of terrorist attacks are very during the second quarter for medium and large accounts although the total number of customers buying the insurance remains relatively small. The brokers responding to the survey said the main reasons their customers do not buy terrorism coverage are the belief they are not likely targets of an attack and the cost of the coverage. To view this release with full data charts, go to http://www.ciab.com and under "News" click on "Council Releases Second Quarter 2005 Market Survey" The Council of Insurance Agents & Brokers is the voice of the market leaders and the premier association for commercial insurance and employee benefits intermediaries in the United States and abroad. From its headquarters in Washington, DC - with programs conducted throughout the nation and world - The Council represents leading commercial insurance agencies and brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. firms. Only the top one percent of all agents and brokers meet membership qualifications. The Council's members, in more than 3,000 locations, place 80 percent -- well over $90 billion -- of all U.S. insurance products and services protecting business, industry, government and the public at-large At-Large is a designation for representative members of a governing body who are elected or appointed to represent the whole membership of the body (for example, a city, state or province, nation, club or association), rather than a subset of that membership. , and they administer billions of dollars in employee benefits. Since 1913, The Council of Insurance Agents & Brokers has worked in the best interests of its members, securing innovative solutions and creating new market opportunities at home and abroad. Web site: www.ciab.com |
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