Risk managers concerned about hardening market: Towers Watson

U.S. risk managers now have evidence of gradual price increases in key commercial lines firmly on their radar screens, says a recent survey from Towers Watson.

The 2012 Risk and Finance Manager Survey found nearly two-thirds (63%) of survey participants are either seriously or moderately concerned about a hardening property and casualty insurance market.

In response to this trend, 69% are marketing their property programs, while 64% are doing the same with casualty business. One third of property respondents said they were using broker-provided catastrophe modeling, while 44% indicated they were using loss analytics for casualty business.

“With all signs pointing to a hardening market, actively engaging in the use of analytics is a great way for companies to prepare themselves for change,” notes Steve Levene, risk advisory and brokerage practice leader for Towers Watson. “This also provides brokers with an opportunity to help their clients better see the linkage between effective analytics and preparation for a hardening market.”