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Member, Beacon International Group, Ltd.
Commercial property/casualty insurance prices in the third quarter rose 3.4% over those of the same period of 2012, according to the Council of Insurance Agents & Brokers’ quarterly Commercial P/C Market Index Survey, released Tuesday.
“The market looked a lot like the second quarter,” said Council President and CEO Ken A. Crerar in a statement. “Pricing in general increased modestly last quarter. But without making any predictions, there were indications that the market hardening tapered off.”
On average, pricing rose for large, medium and small accounts at a rate of 3.4% compared with 4.3% in the second quarter of 2013, according to the charts prepared by Barclays Research based on the Council’s data.
In general, the larger the account, the smaller the increase, with the largest accounts registering an average 2.6% increase and the smallest posting an average 3.8% increase.
The Council noted in the statement that while commercial insurance pricing continued to rise “moderately,” a few lines of business — business interruption, umbrella, commercial property and workers compensation — showed signs of flattening in the third quarter, declining slightly more than some other lines.
“That result was mostly likely because insurers had already factored in added risks,” said the Council. “However, brokers’ experiences on those lines varied across the country depending on location and circumstances. While workers compensation prices eased a bit in some areas, it still remained a tough line to place.”