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EPLI: Opportunities abound More than half the premium potential has not been realized The employment practices liability market represents substantial potential, particularly in the small and mid-sized commercial market. Total premiums written in this market were $3.2 billion in 2004, according to data compiled by MarketStance, Middletown, Connecticut. However, there was an additional $3.3 billion in premium potential that remained on the table. The data show that the national accounts segment is all but fully penetrated. In fact, the market potential is actually slightly less than the amount written because some segments were paying an amount that will not be sustainable in the future as the market continues to soften. On the other hand, both the middle and small markets offer substantial opportunities for EPLI sales. And, considering the prevalence of EPLI suits, it certainly seems advisable for agents to persuade clients of all sizes to purchase some form of protection or, at the very least, get a written declination from clients who choose not to purchase. MarketStance estimates that there was an additional $1.13 billion in premium available from middle market companies that did not purchase EPLI coverage and $2.21 billion from small commercial accounts. The EPLI market had penetrated only 18.4% of the middle market in 2004 and 1.3% of the small commercial market. Price continues to be one of the key factors in the growth of this market. The current softening in this market may prove to help with increasing penetration. For more information, go to www.marketstance.com. * |
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