In a statement accompanying the Council of Insurance Agents and Brokers' Q1 2012 Market Index Survey, CIAB President and CEO Ken Crerar declared a hard-market turn.
Rates had ticked up beginning in Q3 2011, then increased by 2.7% in Q4 and rose again by 4.4% in Q1 2012. CIAB's survey showed increases peaked at 5.2% in Q1 2013, and began to slow in Q2 2013.
In the latest survey, which measures pricing for Q2 2014, commercial rates on average have fallen for the first time since Q2 2011, although only slightly at -0.5%.
"Pricing responded predictably to strong competition and plenty of capacity to underwrite most commercial lines," Crerar says in a statement.
Large accounts saw the most competitive rates, down by 2.6%. Medium accounts fell by 0.2% while small accounts remained in positive territory, with rates climbing by 1.2%.
By line, commercial property rates were down on average by 2.6%, compared to flat in Q1 and up 2.1% in Q4 2013. Business interruption was down by 1% and construction was down by 0.1%.
Plenty of lines still saw increases in Q2. Workers' comp was up 3.1%, and even though that's down from 4.1% in Q1 and down considerably from 8.3% in Q2 2013, CIAB notes it remains a challenging line for brokers.
CIAB cites a Pacific Northwest broker as saying, "Workers' compensation went up 30% to 50%," while a Southwestern broker indicated that any line with negative loss experience can expect "significant rate increases."
Other lines seeing increases: Commercial auto (1.7%), D&O (2.4%) and EPLI (2.9%). General liability and umbrella ticked up slightly at 0.1% and 0.3% respectively, down from 1.5% and 1.7% in Q1.
What's on brokers' minds?
Brokers indicated to CIAB that finding and keeping good talent is their top concern (75% of respondents). Forty percent cited the cost of doing business as their top concern. Healthcare reform placed fourth.
CIAB also says over half of the brokers "see the lack of political leadership in the country continuing as a major problem." Brokers also mentioned the economy, lack of jobs and the impasse over federal budget and deficit issues as challenges.
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