NU Online News Service, Nov. 17, 3:02 p.m. EST
Nearly of a third of participants in a Torus survey say pricing uncertainty is a major concern for the management and professional liability insurance market.
The specialty insurer polled attendees—brokers, agents, insurers and risk managers—at the recent Professional Liability Underwriting Society (PLUS) conference in San Diego and found 30 percent of respondents say the changing pricing environment will have the biggest overall impact on the market over the next 12 months.
"As we move into 2012 we are seeing a transitional market," says Jeff Grange, senior vice president and head of professional lines at Torus, in a statement. "We're beginning to see an uptick in prices. The market needs to be prepared for increases where insureds have substantial losses and/or increased exposure."
Privacy and network security tops the list of risks the small-market business clients need to worry about, according to 61 percent of respondents.
Small businesses need to be more aware of changes in regulation, contract requirements to buy errors and omissions coverage, and new employment laws, according to the survey of 102 professionals.
Many small businesses also remain unaware of the exposure they face from social media tools, Torus says. The biggest risk, say 35 percent of respondents, is lack of risk management policies and procedures. About 30 percent say data leakage is another big risk, as well as unfavorable content posted by employees.
Turning to significant legislation, 35 percent of survey participants say the Dodd-Frank Wall Street Reform and Consumer Protection Act will have the most impact over the next 12 to 18 months.
Nearly 30 percent say the Dodd-Frank act will conjure a greater need for loss control services and 15 percent say the act will result in more whistleblower lawsuits.
"As the regulatory pendulum moves away from insurers, we must now take the time to understand that insureds are operating in an environment of heightened legal activity," says Grange, adding that the Dodd-Frank act will "likely lead to increased compliance costs, new avenues of liability and potential litigation for both public and private companies."
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