Commercial property-casualty prices continue to decline, falling an average of 14 percent in June, compared to 13 percent the month before, according to the latest Market Barometer put out by MarketScout, a Dallas-based electronic insurance exchange.
"There is intense competition for business in the reinsurance sector, generated via traditional channels and from the new opportunities for insurers to spread risk in the capital markets," according to MarketScout's chief executive officer, Richard Kerr.
While there was some indication of a slight drop in profits in the second quarter, "the correction appears to be insignificant because insurers are continuing to aggressively price their products," he added.
In the absence of a potent hurricane season, the property market will remain soft in the foreseeable future. "It is going to take an incredibly tough hurricane season coupled with other catastrophic events to turn the soft property market," he said.
Umbrella-excess suffered the greatest price decline at 16 percent, followed by commercial property and general liability at 15 percent. Fiduciary showed the smallest decline at 5 percent.
By account size, those over $1 million in annual premium showed the largest drop, at 15 percent, while the accounts up to $25,000 in premium were down about 12 percent.
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