Earthquake pricing has softened a bit. The most difficult risks on the West Coast are residential construction for town houses, condos and home builders. The problem with contracting risks is because of numerous lawsuits over alleged building defects, especially in condo construction. Classes in general remain unchanged from previous years. There are also frequent submissions for garage, tow trucks and sand and gravel haulers.
Employment practices liability is the hottest product for the next year.
Accounts that were quoted in the last 18 months are now buying. This is reflected in broader terms, better pricing and a legitimate serious concern about a potentially serious risk to corporate assets. A New England office reports seeing a number of professional liability and medical related submissions. In contrast with last year's survey results, when the correspondents' feeling was that alternative markets would not be a major challenge to traditional insurance coverage, most of our correspondents this year feel that the use of alternative markets is gaining acceptance. An East Coast broker reports seeing a trend toward the alternative markets.