Windstorm premiums in Florida and elsewhere on the Atlantic and Gulf coasts are going down, largely because of new capacity and the predictions that El Nino will produce climatic changes that would lead to a light hurricane season this year. Deductibles are being shaved for both earthquake and hurricane exposures. Insurers say that the biggest problem exposure they are facing in the future is the year 2000 computer problem. More insurers have entered the market, and rates have decreased because of this greater capacity. Environmental coverages, particularly for contractors and consultants, are more abundant and markets are getting stronger.
New capacity is available even for the jumbo accounts.
Miscellaneous professional liability is very competitive because of a number of new insurers entering the marketplace. The non-medical professional liability market is particularly active because of so many different types of businesses that have professional liability exposure. Lower minimum premiums allow greater opportunities for insureds to purchase this coverage. The complex world of cyberspace and Internet exposures is currently being explored by the insurance market. Some companies have developed programs to cover the liability exposure of companies that develop Web sites, operate Web sites and sponsor chat boxes for Web users.