Willis suggest risk managers take advantage of soft market conditions

Willis Group Holdings is urging commercial insurance buyers to take advantage of the ongoing soft market conditions in 2011.
In its report, Marketplace Realities and Risk Management Solutions, Willis notes several lines remain flat or have experienced rate reductions. These lines include:
• property – reductions will average 15%, and will depend on catastrophe exposure and industry type;
• casualty – reductions will range between 0 and 5%, and will depend on exposure and industry type; and
• directors and officers – reductions may reach 15%, but reductions on the primary layer are harder to negotiate and are often available only if the incumbent carrier faces competition, so marketing strategies tend to focus on excess layers.
“Think about terms and conditions you may want to improve,” said Joe Plumeri, Willis’s CEO and chairman.
“Think about coverages for emerging risks that may not be protected by conventional property and casualty programs, including cyber, environmental and political risk insurance. Think about your carriers as trading partners, and take a moment to consider their financial stability and longer-term prospects.”