Benchmark Lowers

That commercial insurance premiums continued their decline in the first quarter of 2007 is only part of the story of the RIMS Benchmark Survey. But let’s take a look at the  highlights: Directors and Officers (D&O), down by 7.7 percent in Q1 2007 and by more than 12 percent in the last two quarters of 2006 combined; workers’ compensation down by 3.8 percent in Q1 2007; and general liability down by just 0.8 percent in the fourth quarter of 2006. Once again commercial property was the only line to report an increase in Q1 2007. No surprise there, but consider that rates in this line reflected a marginal increase of just 0.8 percent, compared with a spike of 6.6 percent in the fourth quarter of 2006. While there is no doubt that companies with properties in catastrophe-exposed regions are still seeing premiums rise, perhaps the underlying story is that even risk managers with coastal property exposures are seeing some relief ahead of  the 2007 hurricane season. For more perspective on pricing and overall industry trends, check out I.I.I. president and chief economist Dr. Robert Hartwig’s latest Overview and Outlook for the P/C Insurance Industry.  Ã‚  

  

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