CIAB Survey Indicates Trend in Increased Rates

July 19, 2002

A survey by the Council of Insurance Agents & Brokers (CIAB) that was answered by more than 130 agents and brokers, notes that commercial insurance rates continued an upward climb for the second quarter of this year. CIAB adds that the trend looks to continue.

Of the producers, 32 percent stated that rates for large commercial policyholders grew between 20 and 30 percent in the second quarter. Thirty-one percent said that rates jumped between 30 and 50 percent, four percent indicated rates grew between 50 and 100 percent, while three percent stated that rates increased by more than 100 percent.

Among the highest increases were those in the medical malpractice arena, where liability rates for all commercial policyholders witnessed some major jumps. Twenty-two percent of those surveyed reported increases between 50 and 100 percent, and 18 percent reported malpractice rates grew by more than 100 percent.

Umbrella risks also witnessed major jumps, with 17 percent of those surveyed reporting 50 to 100 percent increases, with 16 percent claiming gains of greater than 100 percent.

Construction risks for all commercial policyholders saw the greatest proportion of 30 to 50 percent increases, with 38 percent of respondents reporting gains in that range.

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