Most insurers providing architects and engineers (A/E) professional liability insurance plan to raise rates this year, according to a survey from Ames & Gough.
Among those surveyed, 71% of insurers said they are planning rate increases this year. Another 24% are aiming to keep rates flat this year, while just one insurer expects to reduce its rates.
The increases are likely to be modest. Of the insurers planning rate hikes, most said they’ll likely increase rates by 5% or less. Only one is planning an increase of 6 to 10%.
Some will feel the hikes while others won't. Insurers reported different strategies for applying the increases:
- 67% said they plan to increase rates on accounts with adverse loss experience
- 42% will target firms with higher-risk projects, such as condominiums
- 42% are planning to target higher-risk disciplines, like structural engineering
- 33% will be making increases across their entire book of business
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