“Carriers have lots of capacity for new business, but also don’t want to lose renewals. If there’s competition they will lower price,” commented another.
“Appetite for premium is at a desperate level,” noted one insurance professional. “New capacity continues to come into the market (inexplicably) and there is not enough premium to feed all the mouths.” “There is an abundance of capacity for D&O and other management li-
ability coverage. Carriers are seeking to maintain market share by cutting premium and expanding coverage,” reported another broker.
According to the Council, buyers
were able to find deals not only on
pricing last quarter, but on terms and
conditions as well, according to sur-
vey respondents. “Carriers are open
to improving deductibles, terms and
conditions in hopes of being able to
keep premium flat,” said one respon-
dent. Another broker saw “lower
deductibles, broader coverage terms,
more liberal terms.” Still another re-
marked that there are “generally
broader terms, no additional restric-
tions in coverage.”
There was no notable change in cus-
tomer demand for insurance in the
second quarter, the brokers said. Only
26% of those surveyed said demand
was up – about the same response as
in the first quarter.
The economy and credit crisis remain the top concern of brokers across the country. ■
WASHINGTON, D.C. — The Independent Insurance Agents & Brokers of America (IIABA) recently commended United States Senators Jon Kyl (R-Ariz.) and Blanche Lincoln (D-Ark.) for introducing an amendment to a bill (H.R. 5297), the “Small Business Lending Fund Act of 2010,” that would permanently reform the federal estate tax.
The Kyl/Lincoln amendment would permanently set the estate tax rate at 35%, with a $5 million exemption amount phased in over 10 years and would be indexed for inflation. In addition it would include an option for taxpayers inheriting assets in 2010 to either retain this year’s estate tax rate, which is zero percent, with a “carry over basis” or file under the provisions of the bill.
Nakeesha Warner at n.warner
“We applaud Senators Kyl and Lincoln for their efforts to bring attention to the plight of family-owned business and many independent insurance agents who are deeply impacted by the estate tax,” said Robert Rusbuldt, IIABA president and chief executive officer. “The Big ‘I’ supports their amendment and urges Congress to significantly reform the estate tax to encourage investment and growth in small business. This reform should come in the form of a decrease in the estate tax rate and/or increase in the exemption amount and should be indexed for inflation for the future.”
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