First Quarter RIMS Benchmark Survey Shows Soft Landing

Data shows hard market in financial institutions` directors and officers; Rates
flat or modestly down in other product lines
ORLANDO, Fla.--(Business Wire)--
Amid an unprecedented economic crisis, insurance premiums for businesses
continued to slide towards a "soft landing" rather than an abrupt reversal
resulting in rate increases. While banks and other financial institutions bought
directors and officers (D&O) insurance at substantially higher rates, the rest
of the commercial insurance market in the first three months of 2009 saw a
continuing trend of little or no change in rates, according to RIMS Benchmark
Survey, the industry`s leading survey of policy renewal prices as reported by
North American corporate risk managers.

Data from RIMS Benchmark Survey corroborates Advisen`s recent forecast that a
dramatic shift to higher rates is unlikely and that due to the impact of the
recession, commercial insurance buyers will see a more gradual hardening of the
market.

General liability premiums fell 3.8 percent for policies renewing during the
first quarter of 2009, as compared to a 5.9 percent decline in the fourth
quarter of 2008. The average workers compensation premium fell 2.5 percent which
is similar to price decreases over the past several quarters.

The average property renewal was flat for the first quarter as compared to a
decline of 3.8 percent in the fourth quarter of 2008. However, there was a wide
range of changes in recent renewal premiums for individual property risks:
premium changes ranged from a decrease of 11 percent to an increase of 14
percent.

The D&O market continued to be split between financial institution (FI) risks
and all other (commercial) risks. Overall, the average D&O premium increased by
3.0 percent, but the increase was driven entirely by financial companies.
Excluding FI firms, the average renewal was down 3.0 percent. Higher FI premiums
are the outcome of massive losses from the meltdown of the subprime mortgage
market and the ensuing credit crisis. By comparison, overall D&O rates fell 1.2
percent in the fourth quarter of 2008 and fell 4.5 percent during that period
excluding FI firms.

"Most risk managers continue to see flat or slightly lower premiums at renewal,"
says Daniel H. Kugler, ARM, CEBS, CPCU, AIC, ACI, member of RIMS board of
directors and assistant treasurer, risk management at Snap-on, Inc., from RIMS
Annual Conference & Exhibition in Orlando. "The insurance market is still very
competitive and, while some insurers are predicting an imminent hard market,
there are few signs that rates will rise sharply anytime in the near future."

"Even though the credit crisis and the global recession have had a negative
impact on insurers` top and bottom lines, so far financial institution D&O is
the only segment tracked by RIMS Benchmark Survey to respond with higher
premiums," says Dave Bradford, Advisen`s executive vice president and
editor-in-chief of RIMS Benchmark Survey. "Insurers struggle against falling
rates, increased losses in some lines, and sharply lower investment income due
to the credit crisis, but the commercial insurance industry is still
overcapitalized. We expect to see a favorable pricing environment for risk
managers through 2009."

About RIMS Benchmark SurveyTM

RIMS Benchmark Survey is produced by Advisen, Ltd., which collects and analyzes
the data and provides the technology infrastructure for the survey`s online
services. Risk managers and buyers of insurance either contribute directly to
RIMS Benchmark Survey or by using a "data participation letter" to authorize
their broker to provide the client`s program details. The letter is available at
www.RIMS.org/brokerform or by calling 800-655-6590. Risk management
professionals can also contribute by e-mailing current and prior year policy
schedules to Benchmark@RIMS.org or by faxing to 212-655-7453.

Risk managers who contribute data to the survey can benchmark the structure of
their commercial insurance programs, retained loss costs, exposure demographics
and Total Cost of Risk (TCOR) against a highly relevant group of peer companies.
Additionally, survey respondents can use software personalized and configured
for their needs to view detailed schedules of insurance, programs for current
and past years and full-color program tower charts. Both benchmark charts and
program charts can be downloaded into any presentation for senior management.
The results of the RIMS Benchmark Survey are available online or in an
annually-published book. Visit www.RIMS.org/benchmark for details.

About the Risk and Insurance Management Society, Inc

The Risk and Insurance Management Society, Inc. (RIMS) is a not-for-profit
organization dedicated to advancing the practice of risk management, a
professional discipline that protects physical, financial and human resources.
Founded in 1950, RIMS represents more than 4,000 industrial, service, nonprofit,
charitable and governmental entities. The Society serves more than 10,500 risk
management professionals around the world. For more information, visit
www.RIMS.org.

AboutAdvisen

Advisen integrates business information and market data for the commercial
insurance industry and maintains critical risk analytics and time-saving
workflow tools for over 530 industry leading firms. Through its work for the
broadest customer base among information service providers, Advisen delivers
actionable information and risk models at a fraction of the cost to have them
built internally. Designed and evolved by risk and insurance experts, and used
daily by more than 100,000 professionals, Advisen combines the industry`s
deepest data sets with proprietary analytics and offers insight into risk and
insurance that is not available on any other system. Advisen is headquartered in
New York. For more information, visit http://www.advisen.com or call
+1.212.897.4800 in New York or +44(0)20.7929.5929 in London.

Risk and Insurance Management Society, Inc. (RIMS)
Felicia J. Messimer
+1 212-655-6059
+1 862-596-2922
fmessimer@RIMS.org
or
GM - Advisen
Mason Power
+1 212-897-4796 w
+1 917-348-3998 m
mpower@advisen.com

Copyright Business Wire 2009