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Member, Beacon International Group, Ltd.
Eighty percent of commercial insurance buyers have part of their exposures insured with Chartis Inc., the property/casualty unit of American International Group Inc., according to a Barclays Capital Inc. survey.
The survey, released Tuesday, found that portion decreased from 90% who had exposures insured with the AIG unit in July.
Of commercial buyers that insure with Chartis, Barclays said roughly 75% of those customers plan to stay with the unit despite AIG’s troubles, up sharply from 40% of customers who said they would stay with Chartis in July.
“Risk managers appear less concerned about Chartis’ financial strength and, in some cases, Chartis was able to offer more capacity than its competitors,” analysts with New York-based Barclays Capital wrote in the report.
Barclays said it surveyed 43 risk managers. Roughly half of the respondents were from Fortune 1000 companies, with the rest from institutions or smaller companies with a full-time risk manager.
Of those interviewed, 30% said the P/C market is soft compared with 3% six months ago.
Barclays analysts said they expect P/C pricing to remain flat in early 2010, which is consistent with forecasts six months ago. However, they added that the number of rate decreases outpaced increases and that the market is likely to soften further as the economy recovers.