Ample capacity and relatively flat pricing have defined the commercial U.S. property insurance market in the first half of the year, but Superstorm Sandy has prompted tighter terms and conditions for some accounts during midyear renewals.

Erik Nikodem, Boston-based senior vice president and property division executive of U.S. and Canada region for American International Group Inc.'s property/casualty arm, said underwriters have sought to change terms and conditions for flood and named wind events in the Northeast.

“We have not been pushing rate as much as trying to get more robust deductibles in the Northeast,” Mr. Nikodem said.

Steve Zimmer, Chicago-based senior vice president and national property practice leader for Wells Fargo Insurance Services USA Inc., said pricing varies depending on whether an account is catastrophe-exposed or has a previous loss history.

“At the end of the day, each account should be underwritten on its own merits, but if I had to put numbers to it, I'd say noncatastrophe accounts are down slightly to up 5%, while catastrophe-exposed (accounts) are up 5% to 15%,” Mr. Zimmer said.

Owners of commercial property that suffered recent damage face the steepest increases. “Accounts with heavy losses that have catastrophe exposures, you are probably seeing somewhere north of 10% or 15% or even higher” at renewal, Mr. Zimmer said.

Al Tobin, New York-based managing principal of Aon Risk Solutions' property practice, agreed that loss history plays a big role in determining pricing.

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“If you had a big loss from Sandy, you will have to pay more,” Mr. Tobin said. “There's no getting away from that; but if you didn't have a large loss and are a catastrophe-exposed customer, you should have a good renewal.”

AIG's Mr. Nikodem said catastrophe-exposed property owners willing to undergo loss mitigation efforts, such as moving critical electrical infrastructure out of basements and lower floors, will see their efforts reflected in property pricing.

“Along with our engineers, I am meeting daily with clients to talk to them about improving their risk,” Mr. Nikodem said. “I am finding a lot of desire and willingness on behalf of our clients to do things to mitigate losses should there be another event.”

Another primary factor dictating pricing is capacity.

“There's quite a bit of capacity out there and pricing is always driven by supply,” Mr. Tobin said. “Insurers made money in the property business in 2012, so they had an appetite to write property business in 2013.”

David Finnis, Atlanta-based executive vice president and national property practice leader at Willis North America Inc., said aside from established insurers, China-based insurers and Berkshire Hathaway Inc. are beginning to offer capacity for U.S. commercial property.

“The capacity situation is driving the market,” Mr. Finnis said. “Everyone has had a great first half and there is more capacity coming in and threatening people's positions on their current programs.”

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Mr. Tobin said the entrance of Berkshire Hathaway, which launched its commercial property/casualty insurance unit in June after recruiting several top executives from AIG, ultimately will benefit customers.

“Berkshire is bringing a serious balance sheet and some serious capital to the business,” Mr. Tobin said.

“They are in it for the long haul. You don't hire that level of talent to go for a short-term play,” he said.