BOSTON-Insurance rates are still rising in most lines, but there are some signs of a softer market ahead, a panel of risk managers said.

Although risk managers are still seeing their consolidated premiums increase, some areas, particularly property, are at least flattening, they said.

Still, regardless of the easing of some rates, risk managers have had to review their priorities over the past several years as they have adapted to increased premiums and contractions in coverage, they said.

And events such as the Sept. 11, 2001, terrorist attacks have highlighted the importance of some coverages that previously received little attention, the panel said.

The changes wrought by the hard market have also emphasized for risk managers the importance of maintaining close relations with underwriters and brokers, they said.

The risk managers were speaking at a panel discussion during the Lloyd's Non-Marine Under 30s Group 2003 tour, an educational trip taken by young Lloyd's brokers and underwriters. The event was sponsored by Robins, Kaplan, Miller & Ciresi L.L.P., a Minneapolis-based law firm.

Casualty insurance rates continue to rise, and underwriters have indicated that the increases are "not going to stop any time soon," said Deborah Harder, director of risk management at office supply retailer Staples Inc. in Framingham, Mass.

And directors and officers liability continues to see increased rates and much higher deductibles, Ms. Harder said. Prior to the current hard market, insurers would regularly offer first-dollar coverage for D&O "Side A" coverage-which protects individual directors and officers-but now most insurers insist on a deductible of at least $15 million, she said.

Property insurance rates, though, are starting to flatten, Ms. Harder said.

"We are definitely seeing a flattening of price," agreed Janet Breen, director of risk management at Boston Properties Inc. in Boston.

And property insurance underwriters are more eager to quote for business, she said.

"In the past, we were getting quotes in at the last minute, but for our March renewal, we saw quotes coming in early," Ms. Breen said.

Insurers are competing more for business, said Steven Etheridge, director of risk management at Iron Mountain Inc., a documents and information management company in Boston.

"The property market is fairly stable. There's competition coming back, but we are not seeing people offer us huge decreases," he said.

Rates are also stabilizing in the aviation market, said Matthew Lupa, risk manager at engineering and manufacturing company Raytheon Co. in Lexington, Mass.

"Most of the underwriters that we've talked to have tried to get their book of business lined up over the past year or so and now want to move forward," he said.

In addition to coping with higher prices over the past two years, risk managers are also dealing with changed priorities, the panel said.

The Sept. 11 terrorist attacks, in addition to being a huge insurance loss, also highlighted the need for several coverages that were previously given little attention, they said.

Terrorism coverage, which was previously included in standard coverages, is now seen as a crucial add-on for many organizations, they said.

"We've been focusing on terrorism, because we have several so-called `trophy buildings,' " said Ms. Breen of Boston Properties. "And one of the things that has been very important is looking at the policy language itself."

For example, the litigation surrounding the property coverage for the World Trade Center and the number of insured events that the attacks constituted has highlighted the need to ensure that terms are precisely agreed and defined, she said.

The WTC litigation has also underscored the need to have policy documents issued on time, Ms. Breen said.

"It is very frustrating, from a risk management perspective, if we are in front of the CFO or the CEO and they ask, `What does the policy say?' and we have to say that we don't have the policy yet," she said.

For Staples, the WTC loss demonstrated the importance of ingress/ egress coverages in business interruption policies, which pay out when policyholders cannot get access to their sites, Ms. Harder said.

Staples had a store one block away from the WTC, and the store lost its inventory, suffered some property damage and lost its communications lines for several months as a result of the attack, she said.

Staples insures its inventory at its selling price, rather than its wholesale price, which effectively takes care of short-term business interruption losses, Ms. Harder said.

But the ingress/egress coverage and contingent business interruption coverage compensated Staples for the business it lost over the long term, she said.

The company's World Trade Center claim did lead to some negotiation over how much of the contingent business interruption loss was related to the attacks and how much was related to the general downturn in the economy, but, generally, the coverage responded well, Ms. Harder said.

The Sept. 11 losses also underscored for risk managers the importance of maintaining a good relationship with underwriters directly rather than just relying on a broker, the panel said.

"It's our responsibility to educate the brokers that we use, but it is also our responsibility to educate underwriters," said Michael Lipcan, risk manager at Olin Corp., a manufacturer and basic-materials supplier based in Norwalk, Conn.

Risk managers should hold meetings with their underwriters throughout the year, rather than having just one meeting immediately prior to renewal, Mr. Lipcan said.

Part of the process of buying insurance is "selling your company as a good risk," said Mr. Etheridge of Iron Mountain.

And when risk managers develop a close relationship with underwriters and provide them with information that explains the unique features of their own risks, underwriters should respond by rating risks independently, Ms. Harder suggested.

"We are a retail company, and when an underwriter says the rates are increasing because of med mal losses or tobacco lawsuits, I don't care. Underwriters need to look at the risk," she said.

William N. Erickson, partner in the Boston officer of Robins, Kaplan, Miller & Ciresi, moderated the session.