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Growing Demand, Rate Hikes Seen In Environmental Risk Market With new carriers entering the market and existing insurers increasing their capacity, the supply in the environmental risk market has been on the rise. And despite the hardening market for standard coverages, the demand for environmental risk coverage is growing robustly due to a number of favorable trends, according to industry professionals.

These factors include a high level of investor scrutiny surrounding environmental liabilities in post-Enron corporate disclosures and decisions by some financial institutions in the commercial real estate lending market to shift toward environmental insurance policies and away from Phase I site assessment reports.

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