Insurance rates trending lower, survey says
Professional liability insurance premiums for engineers and architects are predicted to flatten out or even decrease over the next 12 months, according to a recent survey of 14 A/E insurance companies.
The nationwide survey %%MDASSML%% carried out by NSPE’s Professional Engineers in Private Practice and the risk management committees of the American Institute of Architects and the American Council of Engineering Companies %%MDASSML%% compiled information relating to coverage, exclusions, claim trends, and the insurer’s history, among other issues.
Among the survey’s key findings:
Through the first two quarters of 2006, the market accumulated a record surplus of $405.5 billion. As these surpluses continue to rise, it’s estimated that premiums will continue to decrease.
Insurers are continuing to focus on more stringent underwriting of the risks for each of their potential insureds. Those who are considered higher risk could experience higher rate increases or difficulty finding coverage.
Frequency and severity of claims experienced in the A/E industry has remained fairly stable and in some cases decreased, also contributing to the stabilization of the rates.
Downward pressure on premiums is being driven by carriers trying to enter the market or build their book of business by offering lower rates.
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Annual Salary Survey
Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.
There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.
But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.
Read more: 2015 Salary Survey