The latest Reagan Consulting Organic Growth and Profitability (OGP) survey of independent agents and brokers shows median organic growth of 5.8% for the first quarter of 2015, a drop from 6.2% from the first quarter of 2014.
According to the survey, all lines—commercial, personal and group benefits—grew at a slower pace in 2015's first quarter than in the same time in 2014. Commercial lines grew at a rate of 6.6% compared with 8.4% growth in the prior year period, attributable primarily to softening pricing and an inconsistent U.S. economy.
"Growth is holding relatively strong despite the decline in pricing," said Kevin Stipe, president of Reagan Consulting, a management consulting and merger-and-acquisition advisory firm for the insurance distribution system. Rates declined by 2.3% in the first quarter, according to the Council of Insurance Agents and Brokers commercial property and casualty (P&C) survey, and the pace of P&C pricing declines is the fastest since 2010. "This signals the industry has moved from flat pricing to true softening," Stipe said.
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Rosalie Donlon
Rosalie Donlon is the editor in chief of ALM's insurance and tax publications, including NU Property & Casualty magazine and NU PropertyCasualty360.com. You can contact her at [email protected].
