Fidelity/Crime Rates Rise Through the Year; Market Stable

Marsh says the percentage of accounts experiencing rate hikes at renewal increased from 28 percent in 2012’s first quarter to 46 percent in the third quarter. Overall, in the third quarter, rates increased an average of 3.3 percent, Marsh says. However, the broker notes that many clients can still achieve flat renewals, and clients with favorable risk profiles could still see premium savings “through aggressive marketing and/or restructuring of programs.” 

The report states, “Insurers continue to focus on risk selection, making risk differentiation the key to renewals. Given the consistent profitability to insurers of the fidelity/crime product line, we expect it will continue to attract modest amounts of new capacity, which will pressure traditional carriers to temper efforts to increase premiums.”