According to figures compiled by Lehman Brothers Equity Research for the Washington-based CIAB, the average rate of decline stood at 7 percent in the fourth quarter.

However, there were still a number of lines exhibiting more moderation than softening. Among these were broker errors and omissions, construction risks, medical malpractice, and surety bonds, CIAB noted.

? For broker errors and omissions insurance premiums, 20 percent saw no change in premiums, while 28 percent reported increases of 20 percent or less. Only 6 percent said premiums were down 20 percent or less. The majority, 42 percent, said they either did not know or did not handle the line.

? On construction risks, 32 percent saw no change, 22 percent saw increases of 30 percent or less, and 28 percent saw decreases of 20 percent or less.

? For medical malpractice, 19 percent of brokers said premiums were unchanged, while 18 percent witnessed increases of 30 percent or less, and 5 percent said premiums have gone down 10 percent or less. Fifty-five percent said they did not handle the account or did not know.

? For the surety bonds line, 38 percent said there was no change, while only 10 percent saw increases of 20 percent of less, and 3 percent saw decreases of 10 percent.

CIAB said survey comments they received from brokers around the country found producers having difficulty finding carriers willing to place residential construction risks. Brokers also said companies are becoming more aggressive price-wise in seeking new business, but are holding the line on renewals.

There were some reports of relaxed underwriting, but the trend was not widespread, the association noted.

Information on the report is available at www.ciab.com.

Reproduced from National Underwriter Edition, January 27, 2005. Copyright 2005 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.