Rate Predictions 2009
Reinsurance treaty renewals that took place on January 1, 2009 experienced less of an increase on rate than anticipated. The average rate increase for American reinsurers was 11% and this was fueled by 2008 losses in the financial sector and the 2nd worst claims year on record for the insurance industry. While record breaking hurricanes were not the headlines in 2008, geographically diversified claims amounted to nearly $100B in claims losses for the insurance community.
These two factors put pressure on insurance premiums for commercial insurance policyholders...no question about it. We are pleased to announce that our team of professionals at IOA have renewed insurance policies with pricing reductions thus far in 2009 when compared to premiums from renewals one year prior due to our exclusive programs and marketing approach. This is all a testament to the volume of business we handle in the Real Estate community and the explanation of why it is imperative to utilize experts in an industry that typically can be described as having many generalists focusing on various classes of business.
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