South Carolina business insurance professionals expect management liability and professional lines rate increases in 2013, according to a November 2012 survey by global specialty insurer Torus.
Specifically, 67% of respondents expected increases of up to 10% year over year, while 19% anticipated prices to increase by more than 11%, according to a recent Insurance Journal article.
In terms of which segments will drive price increases, 32% cited professional liability, followed by 31% selecting EPL, 22% citing D&O and 5% choosing fiduciary.
Of respondents, 49% felt the Dodd-Frank Wall Street Reform and Consumer Protection Act would be the piece of legislation to have the greatest impact on the management liability and professional lines market over the next 12 to18 months. The Patient Protection and Affordable Care Act was selected by 28% of survey participants, while the Jumpstart Our Business Startups Act was cited by 23%.
The survey also examined risks related to the use of social media platforms by small- and medium-size enterprises. Of those surveyed, 58% expect requests for media liability policies by such entities to increase. Only 6% expected requests to decrease, while 36% anticipate such requests to be in line with 2012 levels.
Among respondents, 33% identified the biggest social media-related risk to small- and medium-size enterprises as data leakage, while 27% of respondents cited lack of control over potentially damaging content disseminated by employees. Increased personal injury exposure was cited by 19% of participants, while 13% identified the biggest risk as increased copyright and/or trademark infringement and 8% singled out lack of explicit risk management policies and procedures.
Only 8% of survey respondents indicated that the biggest social media-related risk to small- and medium-size enterprises in 2013 would be the lack of explicit risk management policies and procedures, compared to 35% in the prior year’s survey.
Torus’ survey — which featured 105 insurance professionals including brokers, agents, insurers and risk managers — was conducted Nov. 7-9, 2012, at the Professional Liability Underwriting Society International Conference in Chicago.