Engineering Inc. - July/August 2008 - (Page 19)
professional liability insurance By Maureen Conley 2008 F Premium rates steady or falling— or the third straight year, ACEC’s Professional but for how long? Liability Insurance (PLI) Survey of Member Firms indicates that premiums are declining, while claims are holding steady. And many experts predict those trends will continue through 2008. Soft Market Survey and engineers, for Boston-based Lexington Insurance Company. “We remain committed to individual account underwriting. Accounts with good loss experience can lead to decreases and those with severe claims can experience increases. We always strive to create long-term relationships with our insureds and to moderate any necessary premium or deductible changes.” Despite recent market changes, carriers caution design professionals not to sacrifice continuity with the same insurer or quality risk management and claims The 2008 survey of 533 Member Firms (for F.Y. 2007) reveals that more insurance carriers are finding traction in the PLI market, a trend that is driving competition and helping keep rates low. In F.Y. 2004, six insurance carriers controlled 80 percent of the PLI market, with shares ranging from 4 percent to 34 percent. But in F.Y. 2007, the six top firms controlled 73 percent of the market, with shares ranging from 6 percent to 20 percent, according to the survey. PLI providers such as CNA/Schinnerer and XL Design Professional saw their respective market shares decline o r re m a i n m o s t l y e v e n t h r o u g h 2007—CNA/Schinnerer’s market share slipped from 34 percent in 2004 to 20 percent in 2007, while XL’s went from 21 percent to 19 percent. At the same time, relatively smaller players have sliced into the market with increased success. Beazley, for example, cracked the top six in just two years, capturing 8 percent of engineering firms in 2007. So what forces are driving this softer PLI market? Lee Genecki, chief underwriting officer for Travelers, says insurance companies have become a darling of investors, while several years without any major catastrophes have opened the door for an influx of inexpensive capital. Michael Welbel, a board member at A/E ProNet and president of M.G. Welbel & Associates, Inc., expects demand to diminish as the larger construction industry softens alongside the economy. Both men say rates might decline even further before they rise again, noting that insurance companies typically react to market forces after they take hold. Paula Dixon, senior vice president at Holmes Murphy & Associates and incoming president of the Professional Liability Agents Network, says that while “preferred risks” can expect a modest 5 percent drop, only “engineers that are exercising good risk management and staying away from residential work such as condos” are seeing significant decreases. “Premiums and deductibles are generally flat with prior years,” adds Robert Rogers, assistant vice president, architects I t’s likely the majority of [firms] were lured by the promise of lower premiums. ChuCk kopplin graef, anhalt, schloemer & associates inc. JULY / AUGUST 2008 ENGINEERING INC. 19
Table of Contents for the Digital Edition of Engineering Inc. - July/August 2008
Engineering Inc. - July/August 2008
2009 EEA Call for Entries
Table of Contents
From ACEC to You
News & Notes
Market Watch
Legislative Action
Congressman Kendrick Meek
Going Global
2008 Professional Liability Insurance Survey
Institute for Business Management 2008 Fall Course Catalog
Bridging the Gap
2008 Convention Wrap Up
2008-2009 Executive Committee
2008 Fall Conference Primer
Business Insights
Members in the News
One on One
Engineering Inc. - July/August 2008
https://www.nxtbook.com/nxtbooks/acec/engineeringinc_spring2020
https://www.nxtbook.com/nxtbooks/acec/engineeringinc_winter2020
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1119
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0919
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0719
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0519
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0319
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0119
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1118
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0918
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0718
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0518
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0318
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0118
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1117
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0917
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0717
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0517
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0317
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0117
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1116
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0916
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0716
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0516
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0316
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0116
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1115
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0915
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0715
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0515
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0315
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0115
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1114
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0914
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0714
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0514
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0314
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0114
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1113
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0913
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0713
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0513
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0313
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0113
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1112
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0912
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0712
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0512
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0312
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0112
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1111
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0911
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0711
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0511
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0311
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0111
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1110
https://www.nxtbook.com/nxtbooks/acec/engineeringincSeptOct
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0910
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0710
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0510
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0310
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0110
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1109
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0909
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0709
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0309
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0109_v2
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0109
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1108
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0908
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0708
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0508
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0308
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0108
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1107
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0907
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0707
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0507
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0307
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0107
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0505
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0305
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1105
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0306
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0105
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1103
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0906
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0903
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0703
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0106
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0506
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0503
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0303
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0904
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1104
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0704
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0504
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0304
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0905
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0705
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0104
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1106
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0706
https://www.nxtbookmedia.com