2012 Projections


The economic uncertainty will drive insureds to make cost-saving changes — and that presents a challenge for insurers that need to maintain or raise rates. Even increased rates may not result in premium increases for insurers.


“Clients may cut limits, raise attachments, etc. They will do anything they can to save money if the outlook for next year is a recessionary or negative outlook.”


David Bresnahan, Lexington Insurance Company


As insurers increase rates, it won’t necessarily translate into premium growth because insureds are likely to increase retentions to reduce their insurance costs. But the market is still quite competitive, with excess capital available. Wholesale brokers and surplus lines carriers will continue to play an important role in providing innovation and new products.


Copyright © 2012 by A.M. Best Company, Inc. All rights reserved. No part of this report may be reproduced, stored in a retrieval system or transmitted in any form or by any means; electronic, mechanical, photocopying, recording or otherwise.


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