NU Online News Service, Oct. 21, 1:04 p.m. EDT

Brokers in all regions of the U.S. agreed that the commercial property and casualty market remains competitive, particularly for new business, and that insurers are still willing to "reduce premiums significantly," according to a Council of Insurance Agents and Brokers (CIAB) survey.

"The soft market continued unabated in the third quarter, fueled by strong competition and sufficient capacity," CIAB said in announcing the results of its third quarter "Commercial P/C Market Index Survey."

Renewal rates declined by 5.2 percent on average, CIAB said, compared to a 6.4 percent decrease in the second quarter. Rates for large accounts declined 6.6 percent, mid-size accounts declined 5.5 percent and small accounts declined 3.6 percent, according to the survey results.

"Market conditions haven't changed much since last quarter. Carriers are still willing to compete on terms, conditions and price," said CIAB President Ken A. Crerar. "Barring any unforeseen events, there is nothing on the immediate horizon that suggests a dramatic change in the market's direction."

While the surveyed brokers reported few changes from the second quarter's soft market conditions, there were a few exceptions. CIAB said brokers reported a slight hardening in workers' compensation in some states, in coastal property exposed to wind damage, and in the Southeast where recent flooding occurred.

The survey also revealed a slight up-tick in demand for insurance in the third quarter, CIAB said, and brokers' top concerns remained the economy and health insurance reform.

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Brokers In CIAB Survey Report Continuing Soft Commercial Market

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