Architects and engineers insurance pricing steady
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More than half of architects and engineers professional liability insurers kept their rates steady last year, although about a third reported rate decreases, says a survey.
A total of 53% of insurers indicated their professional liability rates held steady in 2016, 32% lowered their rates, and 16% had rate increases, according to a survey by McLean, Virginia-based Ames & Gough, which was conducted by email in January and February.
The survey, “PLI Market 2017: Insurers Strive for Equilibrium in Dynamic Environment,” which was released Monday, includes 19 insurers who account for more than 80% of the overall market.
A total of 63% of insurers reported higher premium volume, while 32% reported flat volume, and 5% reported their books of business declined last year.
A total of 32% reported an increase in claims severity, and 37% reported an increase in defense costs that impacted overall claims payments.
A total of 11% saw an increase in claims frequency, while 16% reported lower claims frequency. A total of 42% indicated that specific types — such as single- and multifamily- residential, schools, roads and highways including bodily injury claims, and parking structures — accounted for a higher number of claims.
“Despite the competitive environment, underwriters generally are maintaining rigorous standards in evaluating exposures,” said the survey. “Notably, they remain focused on recent and historic claims experience while continuing to monitor emerging exposures. These include the risk of cyber incidents, expanded use of drones and the erosion of protections for design firms under economic loss doctrines,” the report said.
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