Insurance underwriters want 5% to 10% more to renew their accounts, and some lines of coverage and underwriters want or need more, but they can’t get it without risking losing clients, says Jeffrey W. Cavignac, a San Diego-based broker. “Fortunately for those who buy insurance, the industry’s robust surplus is keeping rates on preferred accounts from increasing,” he says.The frequently mentioned prospect of a hard insurance market, characterized by higher prices and stricter underwriting, has not yet materialized.That’s one of the main ideas conveyed by Cavignac & Associates in its forecast for insurance markets in 2012. As Cavignac sees it, insurance rates
The market is generally healthy and steadily growing, and margins are up for large specialty contractors. Further, advances in design tools and owner demand for collaboration are giving subcontractors a seat at the table early on in projects.