Posted on 10 Mar 2010
Errors & Omissions insurance saw rate declines between 5% and 10% in 2009, Guy Carpenter & Co. LLC said March 1, though financial institutions were a notable exception, seeing double-digit rate increases early last year.
The declines came even as primary insurers sought increases but were prevented from realizing them by a "highly competitive market environment." E&O rates were in the single digits during the fourth quarter of 2009 for financial institutions, Guy Carpenter said, especially on lines that saw major increases a year ago.
Rates were most competitive at mid-size law firms, while the large law firm market did not see similar pressure on rates.