According to the most recent survey by the Council of Insurance Agentsand Brokers (CIAB), the commercial property and casualty(P&C) market continued to decline in the first quarter of2015.

Small, medium and large accounts fell 2.3%, on average, comparedwith 0.7% in the fourth quarter of 2014. Large accounts—defined asaccounts generating greater than $100,000 in annual commissions andfees—saw their pricing drop by 3.7%. Medium-sized accounts—thosewith annual commissions and fees between $25,000 and $100,000—weredown 2.7%, while small accounts—those with less than $25,000 inannual commissions and fees—remained “relatively flat,” the surveyfound.

Relatively calm catastrophe season helped pushcommercial property pricing down

“The trend of falling prices we saw in the fourth quarter of2014, continued into the first quarter of this year,” said Ken A.Crerar, CIAB’s president and CEO. “Last quarter, buyers gained someadvantage as pricing slid across the board and across all regionsfor most lines of business. A relatively calm catastrophe season,with the exception of the harsh winter in the Northeast, helpedpush commercial property pricing down in most of the country. Also,the passage of TRIA reauthorization seemed to settle that market,”Crerar noted.

Carriers were eager to book new business and were more open tonegotiation in the first quarter of 2015. According to brokers inthe Northeast and Midwest who responded to the survey, carrierswere “more aggressive,” offering lower deductibles and multi-yearcontracts. Similar trends were noted by other regions.

Still, carriers were looking for good loss histories in settingprices. As one Midwest broker said, “Good accounts being marketedgot very competitive pricing. Bad accounts got increases.”

Demand for commercial insurance remainsstrong

In addition, the survey found, demand for commercial insuranceremained strong with even stronger interest in cyber liability thanlast quarter.

Read the full survey results at Commercial P/C pricing declined in First Quarter of2015, according to CIAB survey.