There appears to be no letup in the commercial property and casualty soft market, as average premium prices deteriorated after showing some signs of stability over the past year, according to a producer association.
The Council of Insurance Agents & Brokers' (CIAB) "Commercial Property and Casualty Market Index Survey" of 160 respondents found that average premium rates for the second quarter of 2010 declined 6.4 percent. This compares to the previous month's decline of 5.3 percent.
Since the second quarter of 2009, rate declines have hovered around 5 percent. Washington, D.C.-based CIAB's recent survey results marked a departure from what some have said may be signs of a stabilizing market.
In comments accompanying the survey, CIAB said, "Excess capacity chasing market share in the commercial property and casualty marketplace has resulted in another quarter of declining renewal pricing."
"It's the same old story," said CIAB President Ken A. Crerar in a statement. "Carriers continue to fight aggressively for new business as capacity flows into the market. It's like someone forgot to turn off the spigot. No one seems to know when the reservoir will dry up, but in the meantime, it's definitely a buyers' market."
By account size, small accounts experienced a decline of just over 3 percent, keeping in line for the past four quarters.
However, midsize accounts came in with a decline of 7 percent, a jump from the previous month's 5.7 percent.
Large accounts declined 8.9 percent compared to 7.4 percent over the previous three quarters.
The CIAB said that in anecdotal comments that accompanied the survey, many respondents said capacity remains abundant and that it is beginning to affect terms and conditions in some cases.
There was no notable change in customer demand, the CIAB noted, saying that only 26 percent of those surveyed said demand was up, about the same as it was in the first quarter.
Mark E. Ruquet is an associate editor with National Underwriter, part of Summit Business Media's P&C Group, which includes Tech Decisions for Insurance.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
