Directors and officers insurance continues to be a highly competitive line. In the first quarter of 2007, D&O prices decreased by 7.7 percent and by more than 12 percent in the last two quarters of 2006 combined, according to the latest Risk and Insurance Management Society Benchmark Survey.
Workers’ compensation also reflected further rate reductions. In the first quarter of this year, workers’ comp decreased by 3.8 percent, and falling premiums show no sign of abating, the RIMS’ survey reported.
Property insurance was the only line of business that increased in the first quarter. Rates reflected a 0.8 percent increase.
General liability premiums decreased slightly in the fourth quarter by 0.8 percent. These premiums have been steadily falling at a controlled pace for the past five quarters.
“A year and a half after Hurricane Katrina, companies with properties in catastrophe-exposed regions are still seeing premiums rise, but trends continue to be quite favorable in other regions and other lines of insurance,” says Joseph Restoule, RIMS secretary and member of the board of directors. “Risk managers are especially benefiting from steadily falling workers’ comp premiums in many areas.”
“2006 was a banner year for the insurance industry with some insurers reporting record profits. That will encourage companies to compete even more vigorously for business,” says David Bradford, editor-in-chief of Advisen. “However, forecasters predict that 2007 will be an active year for hurricanes, and a severe catastrophe could stop this soft market in its tracks.”