The soft property/casualty insurance market continued through the second quarter of the year and there is no sign that the buyers' market will end anytime soon, according to a survey released last week by the Risk & Insurance Management Society Inc.

The RIMS Benchmark Survey, administered by New York-based consultant Advisen Ltd., found that average renewal premium dropped between 2.5% and 3.8% for property, general liability, directors and officers liability and workers compensation insurance.

The survey, based on information provided by risk managers, found that workers compensation experienced the greatest decline in the second quarter, at 3.8%, while property and D&O dropped by 3.5%.

The survey noted that the average D&O premium, which had been buoyed by rate increases in the financial institution sector in 2008 and 2009, fell throughout the first half of 2010.

General liability registered the smallest decrease, at 2.5%.

“The soft market is still going strong,” David K. Bradford, Advisen executive vp and editor-in-chief of the survey, said in a statement accompanying the results. “Insurance capacity remains abundant in almost every line and, as a result of the recession, demand for that capacity has fallen. Unless something happens to wipe out the excess capacity, premiums should continue to drop this year.”

In an interview, Mr. Bradford said there were various differences among most of the lines surveyed since the first quarter, although he said property could be the one line “where there is a bit of significance” in the change. During the first quarter, property had dropped 2.9% (BI, April 19).

Mr. Bradford said that “we had been hearing” that the soft pricing in property had been accelerating. “The numbers seem to support that, but we'll have to wait another quarter” to see if that's the case, he said.

He said that the “only thing I see that could turn the market in the short run” would be a major natural catastrophe that could soak up excess capacity.

A RIMS board member warned in the statement that continued soft conditions are not guaranteed.

“Risk managers continue to benefit from lower premiums, but a big storm could cause the market to turn at any time,” said Robert Cartwright, loss prevention manager for Bridgestone Americas Holding Inc. in Exton, Pa., and RIMS' director of member and chapter services. “Forecasts for the 2010 hurricane season are ominous, and a Gulf Coast hurricane could be especially disastrous because of the oil spill. If catastrophe losses soak up enough capacity, prices could increase for all lines, not just property insurance.”