Filed Under:Agent Broker, Commercial Business

Commercial Rates Rising, but Defying Traditional Market Cycle

Updated: Sept. 11, 10:08 a.m. EDT

The property and casualty insurance market continues to achieve single-digit rate increases but analysts maintain there is little indication drivers are in place for a shift to a hard market.

Towers Watson’s Commercial Lines Insurance Pricing Survey, which compares second quarter prices this year to last year, shows that commercial-insurance prices in the aggregate increased by 6 percent during over that time. It is the sixth consecutive quarter aggregate prices rose for all commercial lines, says Towers Watson.

The financial performance of insurers is not being helped by the 10-year yield on bonds that is below 2 percent, which is negatively affecting investments through all financial markets.

Utilizing some of the data from the Council of Insurance Agents & Brokers quarterly survey of insurance brokers, Charles L. Ruoff, president of C.R. Market Strategies Inc., says if rates remain at their current level of increase, any discussion about rates moving to a hard market “would not be a rational conclusion.”

Featured Video

Most Recent Videos

Video Library ››

Top Story

5 ways insurance agencies can improve their websites

The way people use the Internet has changed over the past few years. Has your website changed with it?

Top Story

15 tips for driving safely on ice and snow

More than 800 people die each year in the U.S. in vehicle crashes caused by snow, sleet and freezing rain.

More Resources


eNewsletter Sign Up

Agent & Broker Insider eNewsletter

Proven success tips and essential information to help agents and brokers grow their practice – FREE. Sign Up Now!

Mobile Phone

Advertisement. Closing in 15 seconds.