Financial, executive and professional lines premiums sinking

Premiums across all financial, executive and professional lines of insurance are decreasing to the levels seen in 1999 and 2000 the low point of the last soft market, according to a Willis Group Holdings survey of London market insurers.
Underwriters surveyed said average premium discounts for financial institutions were 10%, a Willis release says.
In D&O liability insurance, over the last three months, 23% of insurers reported flat rated renewals and of those reporting reductions there was an even balance between 10% and 20% reductions, the release adds.
The continuing reduction in rates across the entire professional indemnity (PI) insurance was reflected in Willis Q3 index, the statement says, adding that the PI index found that with the increasing market capacity available, insurance buyers can in some cases utilise premium reductions to purchase additional limits.
It was without a doubt a buyers market for financial, executive and professional risks and the general consent is that it will continue through to 2008, Roland Avery, chairman of Willis financial executive and professional risks division, said in a statement. However, sub-prime and an economic slow-down have the potential to change the landscape dramatically and we will be keeping a close eye on the marketplace over the next quarter.