HONOLULU–Property insurance rates have risen in Southeastern U.S. areas hit by 2005 hurricanes but are unchanged elsewhere, confounding expectations, according to publishers of an industry survey.

David Bradford, editor-in-chief at Advisen, Ltd., discussing the Risk and Insurance Management Society Benchmark Survey said, “What we see has very definitely been driven entirely by the Southeast.”

The survey revealed current policy renewal prices as reported by corporate risk managers on their first-quarter results.

Organizations with risks in the Southeast are seeing property rates rise, he said, while those located exclusively in the Northeast, Midwest or the West are remaining stable.

This is “good news for the buyers,” Mr. Bradford said in an interview. “Obviously there were a lot of investors who put money in the market after Katrina expecting to see rates skyrocket, and it just hasn't happened to the degree anybody expected.”

Mr. Bradford said he sees the market as “softening” rather than “soft.” He noted that although there is no “consistent definition” of soft, “I would say a soft market is when rates are below break-even on an underwriting basis. We're not at that point yet.”

In keeping with the soft market conditions evidenced in the last six quarters, the survey found directors and officers (D&O) premiums dropped 3.5 percent in the first quarter of 2006 and workers' compensation rates declined just over 3 percent.

The property and casualty insurance industry overall showed a profit in 2005, according to the results, despite ever-dropping prices and a projected $58 billion in hurricane losses–suggesting competition among carriers would provide for a continuing soft market.

Karen Beier, member of the RIMS board of directors, membership and chapter services portfolio, said in a statement, “The insurance market understandably appears a little unsettled by the massive hurricane losses of 2005.” She said risk managers may experience even further softening in the casualty market, adding, “Barring more major catastrophes, premiums should fall further this year.”

General liability rates experienced an upward swing of 5.1 percent; previous quarter survey data showed steadily falling premiums since the fourth quarter of 2003. Advisen analysts believe general liability premiums may have been temporarily pulled higher by the spike in property premium levels but will return to the pervasive softening trend by next quarter.

The RIMS Benchmark Survey is produced by Advisen, Ltd., which collects and analyzes the data and provides the technology infrastructure for the survey's print and online services.

Advisen said corporate risk management participation in the RIMS Benchmark Survey has never been higher, especially with the recent announcement by Advisen that a broker authorization letter is available on HYPERLINK “http://www.rims.org/brokerform”www.rims.org/brokerform or by calling (800) 655-6590.

The results of the survey are available online, published continuously throughout the year, and in a book, published once each year. Details are available at www.rims.org/benchmark.

Risk management professionals can contribute survey data by e-mailing current and prior year policy schedules to Benchmark@RIMS.org. Data can also be sent by fax to Advisen at (212) 655-7453.

Advisen said it inputs data as it is received, making it available for online review and comparison within days. Survey participant support is available by calling (800) 655-6590.

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