CIAB Survey: CORRECTED VERSION
NU Online News Service, Oct. 31, 11:12 a.m. EST?A survey of brokers has found their most recent concerns include insurer solvency, spiraling premiums and clients moving to self insurance plans.
The findings came in a poll by the Washington, D.C.-based Council of Insurance Agents & Brokers in the group's third-quarter "2002 Commercial Insurance Market Index survey."
CIAB found that, since July 1 renewals, premium rates have gone up between 10- and 30 percent in more than half of the accounts insurance brokers renewed between the beginning of July and the end of September.
According to the survey, 65 percent of small accounts, those with commissions and fees of less than $25,000, had increases in the 10-to-30 percent range. Sixty-seven percent of medium size accounts, with commissions and fees between $25,000 and $100,000, saw increases in this range as well
Fifty-two percent of large accounts, with commissions and fees over $100,000, saw increases between 10-to-30 percent.
Of the larger accounts, 21 percent of these clients saw increases of between 30-to-50 percent. Thirteen percent of medium size accounts saw increases in this range, while only two percent of small accounts saw that increase.
The survey consisted of 128 member brokers who responded to the survey.
All classes of insurance have seen increases, the report said. According to CIAB, the brokers reported that "across the board" clients are taking higher deductibles, and 59 percent of brokers said clients are self-insuring "a portion of their risks."
The association said that 51 percent of the responding brokers reported that some clients are "going bare" and doing without insurance for some risks that were previously insured.
Ken A. Crerar, CIAB's president, said members are reporting concern over insurance company solvency. He said that large member brokers are concerned state regulators are not addressing the issue quickly enough.
"Solvency is a top priority, and one the industry and regulators must take very seriously," said Mr. Crerar, adding that the current regulatory system lacks the "full confidence" of the brokers and needs federal reform.
The complete report is available at www.ciab.com.
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