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Member, Beacon International Group, Ltd.
Commercial property/casualty rates fell 5.6% in the fourth quarter of 2009 compared with a 5.8% decline in the third quarter, the Washington-based Council of Insurance Agents & Brokers said Friday.
“Tough competition for new business was the name of the game last quarter as carriers chased market share in a still-weak economy,” CIAB President Ken A. Crerar said in a statement accompanying the survey. “Added pressure came from clients putting the squeeze on carriers to get the best terms and rates. We don't expect to see pricing turn upward until demand picks up and capacity diminishes.”
Rates for small, medium and large accounts decreased as brokers across the country reported aggressive underwriting by insurers, according to the CIAB's quarterly “Commercial P/C Market Index Survey of Brokers.”
But larger accounts experienced the greatest decline at 7.4%, while the small accounts reported a 3.1% decline.
The survey is available at www.ciab.com.