For Immediate Release
June 14, 2002
Crittenden Conference Panel Sees Agents' E&O
Prices Up 50 Percent - Sometimes More
Agents attending a recent panel moderated by Mark D. Harris, President and CEO of Quadrant Insurance Managers, a managing general agency in Columbus, OH, said they're experiencing rate increases of more than 30 percent in most commercial business and in some lines, like agents' E&O, substantially more.
Crittenden News Service, publisher of widely read insurance newsletters, sponsored the conference in Dallas, TX. Panel members were David Hulcher, Director of E&O Operations for IIABA Agency Administrative Services, Inc., the Big I's insurance program, and Raymond Wahl, Senior Vice President of Lee & Mason financial Services, a managing general agency in West Hartford, CT.
Some agents questioned the need for sharp rate increases when overall sales are growing. The panel responded that rate increases are needed because the commercial lines had been under priced for years, and the correction was underway before September 11.
Focusing on agents' E&O, panel members advised agents not to seek coverage from one of their major carriers. "A single bad loss could ruin a relationship that took years to build," Harris commented. "If you're thinking of a status quo renewal for your E&O coverage this year, think again," he warned. "Any agent who has not yet renewed E&O coverage should expect steep rate increases, higher deductibles, and possibly less protection," according to Harris.
The panel forecast a minimum of 50 percent rate hikes for agents' E&O coverage this year, and in some cases, "the increases will be in the triple digits." In this market, a panel member pointed out, underwriters of agents' E&O seek long-term, stable relationships. They are more likely to reject applications from agents with a record of changing carriers every year to get the lowest price.
