Prices Rising, Covers Shrinking

In a wakeup call for commercial insurance buyers, risk managers and other business executives were warned by one top brokerage to expect sharp increases in their insurance premiums and maybe less coverage for the price. Chicago-based Aon brought its seminar series, entitled "The New World of Risk," to New York City with that clear, unhappy message for clients. For now and the foreseeable future, rates will be substantially rising throughout the property and liability lines, ranging from a low of 20 percent to as much as 600 percent on some lines and particular risks, Aon managers said. The sharp hikes are being prompted by a combination of the terrorist attack of Sept. 11, years of unprofitable underwriting and declining capacity in some lines of business, Aon explained.