'Paying More for Less' Sums Up Umbrella Renewals The mid-year umbrella liability renewal marketplace is "dysfunctional" if you are a risk manager and a "bumpy ride" if you are a broker. Rates are up at least 10-30 percent, capacity is a problem for certain industries, and mold exclusions are becoming more common, brokers and risk managers agree.

"Put your seatbelt on" is what Cynthia Shafer, president of Itasca, Ill.-based International Special Risk Services, a division of Risk Placement Services Inc., Arthur J. Gallagher & Co.'s wholesale arm, tells her umbrella and excess clients, many of which can expect a "bumpy ride" as their expiration dates approach.

"Most insurers and reinsurers are still correcting their casualty book, and this has resulted in double-digit increases for the mid-year renewals," said Ms. Shafer. "For a great risk, you might see premiums 10 to 15 percent higher; 25 to 30 percent is the average increase."

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