As the insurance market begins to harden, with insurersboosting premiums or seeking stricter terms for some types ofcoverage, risk managers for the most part are accepting thosechanges.

A recent survey by Hanover Stone Partnersshows only a minority of companies have responded to price hikes orstricter terms by switching their insurer or broker or adjustingtheir retentions. But John Kelly, managing partner at HanoverStone, a network of risk management advisers and services firms,predicts that as the insurance market continues to tighten, morecompanies will look for ways to contain their costs.

“There are pretty tight budgetary constraints and financialexpectations that really put a lot of pressure on risk managers ina rising market to maintain stabilization of the pricing,” Kellynotes.