Wheaton, Illinois, July 18, 2006--Theft and disappearance continue to be the largest causes of loss in inland marine insurance, according to the latest update of the Inland Marine Cause of Loss Report published by the American Association of Insurance Services (AAIS).

The report, updated annually, provides premium and loss data reported to AAIS for nearly 50 classes of inland marine insurance. The information is used by inland marine professionals to help underwrite and price a wide range of diverse risks.

The report draws on more than $1.8 billion in written premium and $700 million in paid losses reported to AAIS for the years 2000-04, the most recent 5-year period available.

Theft and disappearance have commonly been the causes of the largest percentage of inland marine losses reported to AAIS, a reflection of the fact that inland marine insurance is often written to cover high-value property subject to theft.

Sources of loss vary from class-to-class, however, as indicated in the table below which compares percentages of losses for all classes with those in two major categories: construction classes and transit (cargo) classes.

1 ^{Builders Risk, Contractors Equipment, Installation Floater, and Tools and Equipment - Personal}

2 Motor Truck Cargo, Trailer and Trailer Contents, Transportation Floater, and Trip Transit

3 Includes losses not classified.

Among the other inland marine classes in the report are accounts receivable, bailees, boats, difference in conditions, farm equipment, personal property floaters, and more. The following information is provided for each class:

• Yearly written premium and paid losses for each class, and the ratio of paid losses to written premium;

• Yearly earned premium and incurred losses for each class, and the ratio of incurred losses to earned premium; and

• The amount and percentage of paid losses, along with average loss severity, categorized by nine different causes of loss (see table above).

The report is available free of charge over the AAISdirect Internet service to all insurers who use AAIS filed or nonfiled inland marine programs. AAIS member companies that are not affiliated for inland marine can acquire a copy of the report for $100; non-members of AAIS can purchase it for $200.

To use AAIS inland marine programs or AAISdirect, contact Rick Maka, director of marketing, at rickm@AAISonline.com or by calling 800-564-AAIS.

AAIS is a licensed statistical agent and advisory organization that develops policy forms and rating information used by more than 600 U.S. insurers. Its Inland Marine Guide of forms and rating procedures for the nonfiled classes of inland marine has long been regarded as a definitive resource.