The commercial middle market.

Agents and brokers who sell to middle-market manufacturers--businesses that have more than 50 employees and pay premiums ranging from $50,000 to $1 million--cite coverage options, product offerings and competitive pricing as important factors for recommending one insurance carrier over another. In its agent/broker survey of the commercial middle-market, St. Paul Cos. found high rates and the limited number of carriers were the biggest challenges in securing coverage for midsize customers; product liability was the most important coverage and international product liability exposure was an important emerging risk for midsize manufacturing clients.

Biggest challenges in securing insurance coverage for
midsize manufacturing customers

                                               (% of Respondents)

Limited number of carriers                                    43%
High rates                                                    36%
Adequacy of coverage                                           5%
Eligibility due to exposures                                   2%
Placing products in standard market                            2%
Windstorm coverage                                             2%
Products liability coverage                                    2%

Products that are most important for midsize manufactoring
customers

                                               (% of Respondents)

Product liability                                             71%
Workers' compensation                                         33%
Property                                                      24%
Manufacturers' errors and omissions                           16%
Worldwide product coverage                                    14%
Product recall                                                12%
Premises                                                       5%

Products needed in the insurance marketplace for
midsize manufacturing customers

                                               (% of Respondents)

Product recall                                                44%
Product liability                                             33%
Manufacturers' errors and omissions                           28%
Workers' compensation                                         28%
Worldwide product coverage                                    22%
Property                                                      11%
Employment practices liability                                 6%
Products pollution                                             6%
Premises liability                                             6%

New or emerging risks midsize manufacturing
customers face that may require additional insurance
products or coverage

                                               (% of Respondents)

International product liability exposure                      48%
Economic trends faced by manufacturing
  industry                                                    45%
Manufacturers' errors and omissions                           40%
Product recall or tampering                                   35%
Being in the "stream of commerce"                             13%
Risks associated with aging
  of the population/demographics                               8%
Printers' errors and omissions                                 5%
Technology errors and omissions                                2%
Internet liability exposures                                   2%

Source: The St. Paul Cos.