Competition and favorable insurer results in the casualty insurance market for the U.S. communications, media, and technology (CMT) industry continued to generate pricing reductions at the end of 2009. The recession has led to reduced revenue estimates for many companies, putting pressure on insurance premium rates as insurers adjusted pricing to cover fixed costs. The property insurance market for the CMT industry has been in a period of transition and in the fourth quarter 2008, rates flattened or slightly increased while the damage from Hurricane Ike along the Gulf Coast and related flooding losses in the Midwest were assessed.

Looking Ahead

Overall, it is likely that capacity will remain abundant for CMT clients. This industry continues to be profitable for insurers, and many are increasing their industry underwriting teams. In general, incumbent insurers are trying to hold rates flat while other insurers seek to write new business, meaning it is likely that rate decreases will continue for GL, workers’ compensation, and E&O included in the package.