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Member, Beacon International Group, Ltd.
Risk managers continue to enjoy lower premiums on many of their commercial insurance policies, according to the Risk & Insurance Management Society Inc.'s second-quarter benchmark survey produced by New York-based Advisen Ltd.
Directors and officers liability premiums fell an average of 7.29% in the second quarter compared with last year, while workers compensation premiums fell nearly 2% and general liability premiums fell 1.16%, according to the survey of current renewal prices reported by risk managers.
While the survey found no change in premiums for property coverage, 70% of the respondents reported rate decreases, the survey said.
"The good news for risk managers is that property insurance has turned a corner," Joseph Restoule, RIMS secretary and a member of the board of directors, said in a statement. "Although there was no change on average, more than two-thirds of...respondents had premium decreases on their property programs this past quarter, including companies with coastal exposures."
But as David Bradford, editor-in-chief of Advisen, said in the statement, forecasters have predicted a worse-than-average year for hurricanes. "Severe catastrophe losses could not only send property premiums shooting higher, but could also cause the overall soft market to come to a halt," he said.