RIMS Benchmark Survey(™) Reports Commercial Insurance Premiums Continue To Decline During Second Quarter

Directors and officers, workers’ compensation and general liability premiums drop; Property premiums remain stable

NEW YORK, N.Y., July 16, 2007 — Commercial insurance premiums continued to decline during the second quarter of 2007, according to the RIMS Benchmark Survey™, the industry’s leading comprehensive survey of current policy renewal prices as reported by corporate risk managers.

RIMS Benchmark Survey™ second quarter reports show that directors and officers liability (D&O) continued to drop, falling an average of 7.29 percent since last year. Workers’ compensation also continued its steady downward slide, though at a lesser pace, to 1.82 percent as compared to -3.8 percent in the first quarter. The slower pace of premium erosion in workers’ compensation may be due to reform measures in large states such as California and Florida having now worked their way through the system, according to an Advisen analysis. General liability premiums continued a downward trend with a decrease of 1.16 percent.

Reports from the RIMS Benchmark Survey™ also show that property insurance exhibited no change, despite rate decreases reported by 70 percent of survey respondents during the second quarter.

“The good news for risk managers is that property insurance has turned a corner,” says Joseph Restoule, CIP, CRM, RIMS secretary and member of the board of directors. “Although there was no change on average, more than two-thirds of RIMS Benchmark Survey™ respondents had premium decreases on their property programs this past quarter, including companies with coastal exposures.”

“Premiums have been falling in most lines since the end of 2003, and the soft market shows no signs of letting up,” says David Bradford, editor-in-chief of Advisen. “However, hurricane season is now underway, and forecasters predict it will be a much worse than average year. Severe catastrophe losses could not only send property premiums shooting higher, but could also cause the overall soft market to come to a halt.”

About The RIMS Benchmark Survey™

The RIMS Benchmark Survey™ is produced by Advisen, Ltd., which collects and analyzes the data and provides the technology infrastructure for the survey’s online services. Advisen introduced the “Broker Authorization Letter” that enables Risk Managers and buyers of insurance to contribute to the RIMS Benchmark Survey™ by designating their broker to provide the client’s program details. The letter is available at www.RIMS.org/brokerform or by calling 800.655.6590. Risk management professionals can also contribute by e-mailing current and prior year policy schedules to [email protected] or by faxing to 212.655.7453.

Risk managers who contribute data to the survey can benchmark the structure of their commercial insurance programs, retained loss costs, exposure demographics and Total Cost of Risk (TCOR) against a highly-relevant group of peer companies. Additionally, survey respondents can use software personalized and configured for their needs to view detailed schedules of insurance, programs for current and past years and full-color program tower charts. Both benchmark charts and program charts download into any presentation for senior management. The results of the RIMS Benchmark Survey™ are available online or in an annually-published book. Visit www.RIMS.org/benchmark for details.

About the Risk and Insurance Management Society, Inc.

The Risk and Insurance Management Society, Inc. (RIMS) is a not-for-profit organization dedicated to advancing the practice of risk management, a professional discipline that protects physical, financial and human resources. Founded in 1950, RIMS represents nearly 4,000 industrial, service, nonprofit, charitable and governmental entities. The Society serves more than 10,000 risk management professionals around the world. For more information, visit www.RIMS.org.

About Advisen

Advisen Ltd. equals success for insurance professionals, driving growth and profitability through the broadest platform of analytics and information services. Designed and evolved by risk and insurance experts, and used daily by more than 100,000 professionals, Advisen combines the industry’s deepest data sets with proprietary analytics and applications that drive the risk and insurance lifecycle. Advisen is headquartered in New York with offices in London. For more information, visit www.advisen.com or call 212.897.4800. .

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