MarketScout recently released its barometer report for the month of Janaury on property and casualty coverages. MarketScout calculates January renewals at an 11 percent increase, down slightly from December 2003.
“In examining each line of coverage, we found pricing for fiduciary coverages are increasing dramatically,” MarketScout Chairman and CEO Richard Kerr commented.
“However, pricing for most other lines of coverage is easing. Traditionally, medical malpractice, agent’s E&O and products liability coverages suffer the largest premium increases. However, over the last nine months, fiduciary coverages have risen most dramatically; up to 60 percent in some cases. Since fiduciary coverages have historically been inexpensive, brokers and insureds rarely secure competitive bids. The carrier winning the traditional lines of coverage was simply ‘given’ the fiduciary coverage. That trend will change. Fiduciary coverages must now be aggressively bid in order to control premium increases.”
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