Brokers Association Says Prices ModerateCommercial property-casualty prices are beginning to moderate andthe insurance market is beginning to stabilize, according to areport released by the Council of Insurance Agents &Brokers.

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The Washington, D.C.-based organizations first-quarter 2003Market Index survey found that while brokers are still seeingpremium increases on accounts, the increases are not as dramatic asin the past.

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Overall, across all three account categories surveyed (small,medium and large), 66 percent of the accounts saw premium increasesof between 1 and 20 percent. Only 14 percent saw increases ofbetween 20 to 30 percent. Larger increases were at three percent orless.

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These figures compare to the fourth quarter of 2002, where forall three account categories surveyed, 52 percent saw increases ofbetween 1 to 20 percent, and 26 percent of all three accounts sawincreases ranging between 20 to 30 percent.

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Breaking down the overall first-quarter survey results bysize-of-account categories, 70 percent of medium-size accounts,with fees and commission of between $25,000 and $100,000, sawpremium increases in the range between 1 and 20 percent. Forty-sixpercent were on the high end of increases–between 10 and 20percentwith 24 percent seeing single-digit premium jumps.

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Looking at small accounts, with fees and commissions of lessthan $25,000, 66 percent saw increases between 1 and 20 percent.When broken down further, 33 percent had increases between 1 and 10percent. An equal percentage saw increases ranging between 10 and20 percent.

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Among large accounts, with more than $100,000 in fees andcommissions, 61 percent saw increases in the 1 to 20 percent range.Of this figure, 42 percent saw increases in the 10 to 20 percentrange, while 19 percent saw increases ranging between 1 and 10percent.

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Ken A. Crerar, president of CIAB, said the survey suggests thatthe market is beginning to stabilize, especially in the Northeast,where rates had increased the fastest.

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Additional information is available at www.ciab.com.


Reproduced from National Underwriter Edition, April 28, 2003.Copyright 2003 by The National Underwriter Company in the serialpublication. All rights reserved. Copyright in this article as anindependent work may be held by the author.


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