Availability and cost of coverage dominate concerns among commercial insurance buyers

An overwhelming 96% of brokerages surveyed believe their insurance buyer clients are most concerned about availability and cost of coverage, according to The Independent, a global coalition of privately owned insurance brokerages and risk management service firms.
The Independents surveyed its member firms and also found that nearly half of respondents (48%) also indicated their clients have significant concerns about managing risks with fewer resources, such as reduced budgets.
In an effort to manage risks more cost effectively, more than half (56%) of those surveyed indicated their clients are making no changes in their programs, while nearly half (48%) said their clients were raising deductibles or retentions.
With buyers more mindful of their changing exposure profiles, 40% of the brokers indicated clients were adding or increasing coverage to address emerging risks, such as cyber exposures, political risk and terrorism, the survey found.
At the same time, 32% indicated their clients are seeking higher limits on their insurance programs, while 16% see clients reducing limits.
Almost half (47%) of the respondents indicated their clients consider natural hazards to be their most significant risk entering 2012, followed by supply chain (42%), governance/directors and officers liability (37%), and stability of the insurance/reinsurance markets (32%).
“While the record level of natural catastrophe losses in 2011 hasn’t resulted in dramatic pricing increases, it has generally led to a firmer stance from insurance underwriters, including upward pressure on premium pricing and some restrictions on capacity for facilities or key suppliers with exposure to natural hazards, such as windstorm, earthquake, tsunami and flood,” said John Eltman, head of North American business for Miller Insurance and the founder of The Independents.