Property/casualty insurance pricing dips in last quarter
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Pricing in the commercial property/casualty insurance market dipped slightly in the fourth quarter of 2014, a study released Tuesday by the Council of Insurance Agents & Brokers finds.
According to the council's quarterly Commercial P/C Market Index Survey, premium prices declined by an average of 0.7% during the fourth quarter of 2014, compared with increases of 0.1% in the third quarter of 2014 and 2.1% in the fourth quarter of 2013.
Large accounts experienced the largest pricing drop, falling 2.2%, while medium accounts dropped 0.9% and small accounts rose 1.1% in the fourth quarter, the survey found.
“Changes weren't particularly dramatic last quarter, and capacity remained ample for good accounts and new business — very similar to what we saw in the previous quarter,” Ken A. Crerar, president and CEO of the council, said in a statement.
The survey also identified variations in coverage terms and conditions by region. In some regions of the country, insurers are increasingly scrutinizing wind and hail losses and pushing for separate/higher wind/hail deductibles while maintaining relatively flat rates, the survey found.
“In the Pacific Northwest, brokers have seen increased scrutiny on property risks given recent hail activity,” the report states. “In the Southwest, carriers tightened property underwriting and increased the use of wind and hail deductibles.”
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