EPLI Market Survey 2012 published – our findings, including rate competition

December is the month when we release our annual review of the Employment Practices Liability Insurance market.  This year’s evaluation included 36 products, including newly-added Alterra, Business Risk Partners, and Protective.

We found:

  • A general trend to higher rates (up 10-12%) BUT some carriers actually forecasting lower rates (down 5-10%), which we find really surprising, given that the line is early on a long march to rate adequacy
  • Flat deductibles/SIRs except for a few carriers planning significant increases, which we don’t find surprising
  • Lots of buzz about Wage & Hour coverage, but other than the Aon product, not much happening – we’re just waiting for some carrier to announce that they have a similar product but for smaller insureds (or maybe not; carriers seem really reluctant to offer such coverage)
  • Estimated U.S.-purchased annual premium writings of $1.5 billion, with another $550 million for non-U.S.-based insureds
  • Discussion about EPL coverage for Internet-based exposures, something that doesn’t seem necessary (if its employment related, isn’t the standard EPL policy already covering?)

To review the Executive Summary or to order a copy of the 97 page Report, please contact the International Risk Management Institute (IRMI) at 800/827-4242 or visit their website.


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