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Member, Beacon International Group, Ltd.
The soft commercial insurance market continued through this year’s third quarter, according to a report issued Thursday by broker Marsh Inc.
According to Marsh, the market remains marked by intense competition and overabundance of capacity. Marsh said that, barring some unforeseen event, the market should remain stable into next year.
The report—“U.S. Insurance Market Report 2010, Third Quarter Update: Insureds Net Benefits as Downward Rate Pressures Persist”—found that directors and officers liability rates declined an average of 8.7%, while general liability rates dropped 6.7% on average. Commercial property rates dropped an average of 6.1%, workers compensation rates dropped an average of 5.3% and automobile liability rates barely budged, dropping 0.1% on average.
“Commercial insureds continue to experience favorable market conditions as competition among insurers remains high and capacity plentiful,” said Joe McSweeny, president of Marsh’s United States and Canada division, in a statement accompanying the report’s release. “A surplus of capacity, continued profits for insurers, and a stable litigation environment should lead to continued stability in the fourth quarter of 2010 and into 2011.”
The report was based on data compiled from Marsh accounts renewing in the third quarter.
The complete report is available at www.insurancemarketreport.com/us2010update.