Commercial property-casualty prices declined an average of 14 percent in June, according to the latest Market Barometer put out by MarketScout.
Dallas-based MarketScout's Chief Executive Officer Richard Kerr said that the insurance industry continues to improve its financial position, despite rate cuts virtually across the board.
"There is intense competition for business in the reinsurance sector, generated via traditional channels and from the new opportunities for insurers to spread risk in the capital markets," he said.
While there was some indication of a slight correction in U.S. insurer profits in the second quarter, "the correction appears to be insignificant because insurers are continuing to aggressively price their products," Mr. Kerr noted
In the absence of a potent hurricane season, the property market will remain soft in the foreseeable future. "It is going to take an incredibly tough hurricane season coupled with other catastrophic events to turn the soft property market," he said.
In terms of coverage class, umbrella-excess suffered the greatest price decline at 16 percent, followed by commercial property and general liability at 15 percent.
Fiduciary showed the slowest decline at 5 percent.
By account size, those over $1 million in annual premium showed the largest decline, at 15 percent, while the accounts up to $25,000 in premium were down about 12 percent.
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