Commercial insurance rates continue to slide

Commercial property/casualty rates fell again in the first quarter of 2017 but the rate of decline eased, according to the latest pricing survey by the Council of Insurance Agents & Brokers.

On average, rates fell 2.5% across all accounts in the first quarter, compared with 3.3% in the fourth quarter of 2016, Washington-based CIAB said Tuesday. Insurance rates have declined for the past nine quarters, according to the brokerage trade group.

Once again, large accounts saw the greatest rate decrease at 3.8%. An increase in new and expanding market entrants and aggressive underwriting led to a competitive first quarter.

The biggest decline was in commercial property, down 3.1%, followed by general liability down 2.6%, workers compensation down 1.9%, and umbrella down 1.1%. The only major line that saw an increase was commercial auto, where rates rose 5.4% on average.

“Commercial premium pricing this quarter was consistent with what we saw in 2016,” Ken A. Crerar, president/CEO of CIAB, said in a statement. “The market remained soft across most lines of business. Poor loss ratios in commercial auto continued to drive pricing upward, a trend we continued to see in accounts of all sizes for that particular line.”