William Newton is aware of the general swell in competition throughout the property-casualty market, but the veteran broker for West Coast contractors liability wasn't expecting to see similar trends in residential construction just yet. The increased competition on residential contractors liability business is "incredibly surprising given the loss experience that this class of business has had over the last 10 years," said Mr. Newton, president of the National Association of Professional Surplus Lines Offices, Ltd.
"We have seen a number of new players in the market and minimum premiums are dropping rapidly. Rates are dropping rapidly. Retentions are dropping," said Mr. Newton, who is also president of Lemac & Associates, a wholesale brokerage in Los Angeles.
"I really thought residential construction would be the last class of business that people would start competing over," he added during a February interview at NAPSLO's midyear conference.
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