Renewal rates in the public entity casualty insurance marketplace generally ranged from flat to 5 percent increases in the last quarter of 2009, with some exceptions. Insurers have become especially diligent in underwriting, and typically now require more information from public entity clients. Risks with an acceptable loss history, moderate changes in exposures, and a reasonable program structure around retentions and limits were likely to see little-to-no change in underlying rates and program structures.

Looking Ahead

Budget deficits and decreased revenues will continue to pressure public entities and their risk management teams in 2010. Public entities have continued to retire and lay off employees. This is expected to contribute to increases in workers’ compensation and employment practices claims, which will likely further harden pricing.