Commercial P&C rates continue to decline in Q1 2017
Commercial property/casualty (P/C) rates declined on average by 2.5 percent, compared to 3.3 percent in the fourth quarter of 2016, according to The Council of Insurance Agents & Brokers’ Commercial P/C Market Survey.
The soft market saw a decline in rates for the ninth straight quarter across small, medium and large accounts, according to the organisation. Premium pricing saw its greatest decline throughout 2016, but has since begun to stabilize in 2017. Once again, large accounts saw the greatest rate decrease at 3.8 percent. An increase in new and expanding market entrants and aggressive underwriting led to a competitive first quarter.
“Automobile is the only line of business under stress,” explained one respondent from a small regional-sized firm in the mid-east. “Premium increases in this line are being offset by the other lines resulting in flat–to-small single digit increases in the overall account premium.”
Ken Crerar, president/CEO of The Council, said: “Commercial premium pricing this quarter was consistent with what we saw in 2016.
“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.”
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