9
O P I N I O N
Key factors
F indings of a new survey of 18 leading insurance companies providing professional liability insurance to architects and engineers in the U.S. may prove instructive for design firms as they examine or review their 2019 risk management and insurance renewal strategies. For AEC firms, findings of latest annual professional liability insurer survey may help guide 2019 risk management and renewal strategies.
this year cite claim severity as their biggest concern. In comparing 2018 claims patterns with those of prior years, 33 percent saw higher claim severity last year. This underscores the need for design firms to practice sound risk management. That includes pro- actively addressing circumstances that could become risk projects, disciplines or those operating in regions with greater claims activity.” “This year, rather than aiming for across-the-board rate hikes, insurers planning to raise rates are targeting AEC firms with large claims, higher
Joan DeLorey
For starters, competition and generally favorable claims experience are helping most insurers hold the line on rates. The majority of the insurers – 67 percent – participating in the annual survey by Ames & Gough plan to leave rates unchanged this year. Yet, among the remaining six insurers, four will seek rate hikes of up to 5 percent and two, from 6 to 10 percent. This year, rather than aiming for across-the-board rate hikes, insurers planning to raise rates are targeting AEC firms with large claims, higher risk projects, disciplines or those operating in regions with greater claims activity. Here are specific details along with applicable risk management measures: ❚ ❚ Claim severity, a key underwriting factor. Al- though insurers weigh several factors in underwrit- ing a particular risk, 83 percent of insurers surveyed
Jared Maxwell
See JOAN DELOREY & JARED MAXWELL, page 10
THE ZWEIG LETTER May 13, 2019, ISSUE 1296
Made with FlippingBook Annual report