Posts Tagged ‘Umbrella & Excess’

July 26th, 2012

Umbrella and Excess at July 1, 2012 Reinsurance Renewal

Posted at 1:00 AM ET

Primary insurance rates in umbrella and excess were up 4 to 5 percent in the first six months of 2012. The upward rate movement began during the latter part of 2011 and is continuing into 2012. Entering 2012, we expected continued rate improvement depending on the exposure, size of the insured and loss activity. Individual accounts (and certain classes of business such as energy, transportation and some contracting business) are seeing higher-than-average rate increases of low double-digits in some cases. With limited ability to generate investment returns coupled with a number of years of primary insurance rate reductions, increase in exposure bases due to a slowly recovering economy and loss trends, carriers are pushing prices higher.

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February 6th, 2012

January 2012 Reinsurance Renewal: United States Casualty Lines

Posted at 1:01 AM ET

Automobile and General Liability

Primary insurance rates in the commercial sectors have stabilized with underlying exposure stabilizing as well. The majority of general and automobile liability renewals renewed flat or with rate increases in the 1 percent to 5 percent range. Some favorable primary risks, however, continue to experience rate decreases in the single digits. The overall impact has been a slight increase in liability subject premiums in the low single digits. Underwriters of medium to large US liability businesses have been requiring more data than in the past. They are acquiring additional details on loss data and trends, safety reports and risk management practices. Direct commercial liability markets continue to show general improvement in their profitability as underwriting practices improve and increased portfolio analytics, such as predictive modeling, continue to be implemented.

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July 19th, 2011

Focus on Hurricane Season at July 1, 2011 Reinsurance Renewal: US Casualty Overview and Excess/Umbrella

Posted at 1:00 AM ET

US Casualty

July 1 renewals in the US casualty lines overall continued to operate in a soft pricing environment, with little change from renewals earlier in the year. Commercial primary casualty pricing continued to decline during the first half of 2011, albeit at a slower pace than 2010. Of all the casualty lines, rate hardening on a relative basis has been more evident in workers compensation. General liability rates remain flat. Subject premium base reductions for many of the casualty lines have begun to slow and stabilize and, in some cases, increase, as a result of the recovering economy.

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January 25th, 2011

2011 Reinsurance Renewal Rates: US Casualty, Auto & General Liability, Casualty Clash and Umbrella & Excess

Posted at 1:00 AM ET

141x141jan1thumb32US Casualty

The casualty reinsurance market continues to be concerned about the level of primary market pricing, with that impact being felt most strongly in proportional treaties where some ceding commissions are being reduced. Reinsurance pricing is averaging flat to down by 5 percent.

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February 23rd, 2010

Umbrella & Excess Rate Renewals at Jan 1, 2010

Posted at 11:00 AM ET

Premium income fell for insurers primarily because the weak economy left customers with smaller businesses and reduced value exposures to insure. Even when rates were flat or slightly higher, some insurers’ premium income on specific placements declined by 10 percent or more. Reduced premium bases were particularly evident in the Fortune 2000 lead Umbrella business. Segments that experienced pricing stability or rate increases include the small to middle market segment, excess towers where there is less rate reduction pressure and large insureds experiencing loss activity. This last group includes the energy, utilities, rail, transportation and life science industries. Given the recovery in the capital markets and new insurer entrants, absent significant changes in loss reserves or activity, the outlook is for a continued competitive situation.

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