A survey of major insurance brokers shows the market iscontinuing to soften and carriers appear to be broadening theirappetite for business.

The Washington, D.C.-based Council of Insurance Agents &Brokers released its third-quarter market survey of its memberbrokers yesterday. The survey indicates that generally the marketcontinues its downward trend.

Based on comments from the 108 member respondents, however, thedownward trend does not extend to property catastrophe risk, whichremains a very difficult market to place.

According to an analysis of the report prepared by LehmanBrothers Equity Research for the CIAB, average premium pricesdeclined 5.3 percent in the third quarter. The largest premiumdecline was for large accounts (more than $100,000 in commissionand fee), which decreased 7.3 percent.

Midsized accounts (commission and fees between $25,000 and$100,000) declined 5.1 percent. Small accounts (less than $25,000fees and commission) declined 3.4 percent.

The report indicates that drops by line of business ranged from6.9 percent for general liability to 1.4 percent for commercialproperty.

According to the report, the market has seen a steady declinesince a modest increase in the fourth quarter of 2005.

Anecdotal comments reported by CIAB indicate that carriers arelooking at lines of business that were the sole domain of excessand surplus markets a year ago, showing aggressiveness in pricingand liberalizing policy terms.

However, coastal exposures remain tough with tight capacity onwind, flood and property. Deductibles and exclusions areincreasing, CIAB said, and some carriers are expanding theirdefinition of coastal property for business to within 60-to-70miles of the coastline.

Appetite is not clear among some carriers, and the problems areparticularly severe in Florida and along the Southeast Coast, CIABsaid.