Rate increases appear to be moderating across most lines, though prices are still rising at a fierce clip for directors and officers liability coverage, according to a survey of 600 risk managers.

D&O premiums shot up 83%, on average, during the first quarter of this year, according to preliminary results from benchmark survey data compiled for the Risk & Insurance Management Society Inc. That increase compares with a 103% rise from 2001 to 2002 and a 40% increase from 2000 to 2001.

Property premiums, meanwhile, increased an average of just 4% during the quarter, compared with an increase of 80% from 2001 to 2002 and 58% from 2000 to 2001.

Excess casualty insurance premiums rose 19% during the quarter, compared with 118% from 2001 to 2002 and 62% in the prior period.

Fiduciary liability insurance premiums increased by 22% during the quarter, compared with 43% and 19%, respectively, for the two previous periods.

RIMS, in partnership with New York-based information services provider Advisen Ltd., released the survey results last week in kicking off the 41st RIMS Annual Conference and Exhibition in Chicago.

This year marked an expansion of the survey designed to provide more information about companies' insurance programs. In addition, changes were made to ensure that the information was as current as possible.

For previous studies, RIMS surveyed risk managers about their insurance purchases for the prior calendar year, and it took several months after the data was collected for the survey findings to be released.

As a result, the survey results were based on data that was, in some cases, nearly a year old, said Thomas P. Ruggieri, chief executive officer of Advisen.

"Let's face it, the benchmark report in the past was always dated," said Christopher Mandel, the outgoing president of RIMS. "It was at least 6 months old or older by the time it hit hard copy."

In contrast, for the current survey, U.S. and Canadian risk managers submitted their insurance schedules to Advisen using e-mail. Confidentiality agreements were arranged to ensure that the data was not misused.

The current survey project helped produce a broader understanding of risk managers' purchases and programs than could be obtained from previous benchmark surveys, according to RIMS and Advisen.

"For the first time in the history of the Benchmark Survey, we can see nearly real-time indications of the size and make-up of insurance programs and, therefore, a virtual snapshot of the market dynamics currently affecting buying decisions," Mr. Mandel said.

Risk managers can use such information to negotiate better terms from their insurers and to show upper management how their programs compare with others at similar companies, he said.

"Management likes nothing less than to have data put before them that is antiquated and less reliable," Mr. Mandel said.

The current survey results provide information on the average percentage change, from year to year, in the number of policies respondents purchased to fill out each insurance program.

Those results confirm that risk managers have struggled to place coverages and have contracted with more markets to obtain needed limits, according to RIMS.

In the D&O market, for example, risk managers experienced an 11% rise in the number of policies during the first quarter of 2003. From 2001 to 2002 they experienced a 20% increase, compared with a 16% rise from 2000 to 2001.

The greater the percentage change, the more markets risk managers are contracting with to fill out their coverage limits, Mr. Ruggieri said.

In contrast to the D&O market, the number of policies needed to fill out property programs declined by 2% during the first quarter of 2003, the survey found. The increase was 15% from 2001 to 2002 and 27% from 2000 to 2001.

Past RIMS benchmark surveys did not report information on the number of policies per program, according to Advisen.

This year's survey also provides information on how risk managers have adjusted the limits they are purchasing.

Excess liability limits purchased by respondents stayed flat during the first quarter of 2003 after rising 8% from 2001 to 2002 and 6% from 2000 to 2001. D&O limits rose 1% during the first quarter of 2002, compared with increases of 4% from 2001 to 2002 and 14% from 2000 to 2001.

In addition, the survey provided a look at risk managers' average percentage change in self-insured retentions.

D&O retentions increased 21% during the first quarter of 2003, compared with 219% from 2001 to 2002 and 63% from 2000 to 2001. Property retentions rose 5% during the first quarter, compared with 163% from 2001 to 2002 and 242% from 2000 to 2001.

To participate in the "RIMS Benchmark Survey" or to receive a copy of the report, contact Advisen at 800-655-6590.