Prices in the insurance marketplace are continuing to decline sharply with few upward trends in any risks according to a market survey of leading brokers conducted by an insurance brokerage association.
The second quarter commercial market survey released by the Washington, D.C.-based Council of Insurance Agents & Brokers shows average commercial rates declined 11.8 percent in the second quarter of this year, virtually identical to the 11.3 percent decrease in the first quarter of this year.
The survey received responses from 121 of the world's largest brokers, who are members of the association. They were asked to rate changes in premium rates over the past three months.
According the survey, rates are down by virtually the same amount as last month for all size lines of business.
Seventy-nine percent of small accounts, with commission and fees of less than $25,000 were down from 1 to 30 percent.
Ninety-two percent of medium size accounts were down by the percentage, and 83 percent of large accounts were down by the same percent. In addition, 6 percent of large accounts, more than $100,000 in commission and fees, were down 30 to 40 percent.
The downward swing was relatively similar to the first quarter.
The survey said this is the lowest point premium prices have reached since the hard market high of plus 28.5 percent in the fourth quarter of 2004.
Over the past five quarters, prices have been edging downward, the survey indicates, but did not reach double digit decreases until the beginning of this year.
Among the lines of business that have seen steepest declines in the quarter are general liability at minus 12.4 percent and commercial property at minus 12.2 percent.
However, anecdotal comments reported by the CIAB indicate that agents in some parts of the country are still experiencing increases on some lines of catastrophe business. In its own comments, the association described the market as being '"totally unpredictable'" in terms of pricing and underwriting."
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