Relief for commercial insurance buyers
The commercial middle market ($25,000-$100,000 in premium) is expected to enjoy lower rate increases and some flat pricing over the next six months, according to a survey released August 5 by Assurex Global. The survey of Assurex Partners found that underwriters are starting to take a more aggressive approach to middle market new business and renewals. The survey also indicated that the higher deductibles that have been part of the hard market are expected to remain in place. By line, the Partners surveyed found:
* Property. Fifty-five percent anticipate premium increases will not exceed 10%; another 13% expect decreases of as much as 25%; 28% expect increases of 10% to 25%.
* D&O. One-third expect premiums to increase more than 25%; another 44% anticipate increases of 10% to 25%.
* Professional liability. Seventy percent expect increases of at least 10% to 25%.
* General/Public/Products Liability. Sixty-four percent expect increases of 10% to 25%, mirroring the first half of 2003.
Aon Trade Credit introduces “offshoring” coverage
Aon Trade Credit, Chicago, has introduced Offshoring Protection Insurance that protects against a service disruption caused by a political event. The product insures the extra costs and expenses incurred in the event that offshore outsourcing services have to be terminated and/or relocated due to political threats, such as terrorism, war or civil war, seizure of willful destruction of property by the host government, or cancellation of licenses or permits.
CNA/Schinnerer changes blanket additional insured coverage
The CNA/Schinnerer Blanket Additional Insured Endorsement to its Business Account Package Policy for small to medium-sized architectural and engineering firms has been broadened to extend beyond “ongoing operations.” The endorsement now includes insurance for “work” performed as part of the agreement with the original policyholder, extending coverage to covered claims that are made after the work is completed.
Royal/Sun sells E&S business to Allegheny
Royal & SunAlliance sold Royal Specialty Underwriting, Inc. (RSUI), its excess and surplus lines business, to Allegheny Insurance Holdings LLC, a subsidiary of Alleghany Corp. Under terms of the transaction, Alleghany will acquire RSUI’s underwriting platform and access to its distribution channels. Unearned premium reserves of approximately $300 million relating to business underwritten by RSUI also will transfer to Alleghany.
RLI updates e-XS
RLI has updated e-XS, its Internet-based commercial umbrella/excess coverage so that “not only can our producers quote, bind and issue policies through the RLI Portal, but now they can issue endorsement and cancellations,” according to Steve Corrigal, RLI assistant vice president, e-XS. “The upgrade also uses XML technology, which permits greater data exchange flexibility.”
Nationwide buys Pru’s nonstandard auto business
National Mutual Insurance Co., Columbus, Ohio, purchased THI Holdings, Inc., from Prudential Financial, Inc. THI offers domestic, nonstandard auto business marketed under the Titan Insurance Co. and Victoria Insurance Group brands.
Chubb makes executive protection available to larger companies
Privately wheld firms with up to $1 billion in revenue and 2,500 employees can now purchase ForePront Portfolio and Power Source, executive protection coverages underwritten by the Chubb Group of Insurance Companies. Forefront Portfolio and Power Source are comprised of eight distinct coverage sections: directors and officers liability, employment practices liability, fiduciary liability, miscellaneous professional liability, Internet liability, kidnap/ransom and extortion, crime, and workplace violence expense insurance. ForeFront is marketed through independent agents. Power Source is written through wholesalers appointed by Chubb. Under the programs, customers can select one or all eight coverage sections and can choose an individual or combined limit of liability.
Copyright Rough Notes Co., Inc. Oct 2003
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