For Immediate Release

CONTRACT DEMANDS AND ASSET PROTECTION DRIVE GROWTH IN SPECIALTY ENVIRONMENTAL AND CONTRACTORS PROFESSIONAL LIABILITY MARKETS

NEW DAY MARKET UPDATE 2007 Reports on Trends and Buying Motivators

BORDENTOWN, NJ, April 16 – Contract demands and asset protection continue to drive growth for environmental coverages and specialized contractors professional liability, according the New Day Underwriting Market Update 2007. 

The Update is issued by New Day Underwriting Managers, a specialty intermediary whose focus is exclusively environmental and construction related professional liability.  The Update provides a state-of-the market overview of these specialty coverages, including Pollution Legal Liability (PLL), Contractors Pollution Liability (CPL) and Contractors Professional Liability (CPrL) coverages.  The full report is available online at www.newdayunderwriting.com

According to New Day President Jefferey Lejfer, “Environmental issues and construction-related professional liability are complicated risk issues.  For agents and brokers, having a knowledgeable resource can simplify the complexity.”

“Our Market Outlook aims to provide some valuable knowledge transfer and insight into the issues and trends that are driving the market,” said Mr. Lejfer.  “With this information, we believe brokers are more equipped to help their clients navigate the available risk management options and find optimal solutions.”

The New Day Market Outlook 2007 pinpoints a variety of trends affecting the growth and opportunity in the market among them:

Environmental 

• Pollution Legal Liability (PLL) continues to be the workhorse of the market and is showing no signs of relinquishing its leadership position.  PLL accounts for approximately 65% to 70% of the entire $2 billion environmental insurance marketplace.

• Regulatory, contractual, financial, and risk management continues to drive the purchase of PLL coverages.

• Approximately 60% of all of the Contractors Pollution Liability coverage purchased resulted from real estate transactions -- roughly 80% of those purchasing coverage to manage the environmental risks of a real estate transaction were first time buyers.

• As a result of a “softened” market, the overriding theme for 2007 will be “value for the money” with carriers appearing more willing to offer enhancements rather than reduce price. 

• Annual Contractors Professional Liability (CPrL) premiums are estimated in the $250 million range and growing at a rate of about 15 - 20% each year.

• The professional liability marketplace, as a whole, continues to fight its way back to profitability and even though the past 3-4 years have been profitable for many, rates still appear to be increasing.

• While no insurance carriers are expected to exit the CPrL marketplace in 2007, there is a strong possibility for new entrants to enter the marketplace, especially entertaining the middle market CPrL business

New Day Underwriting Managers LLC is a specialty resource for agents and brokers, assisting them and their clients find appropriate, high-quality environmental and construction related professional liability insurance coverages.  The company offers agents and brokers single-point access to an ample portfolio of products and services provided by the nation’s largest environmental and professional liability insurance providers.

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