Commercial property and casualty (P&C) pricing continued to slide in the second quarter of 2014, as competition drove the market.
This is according to The Council of Insurance Agents & Brokers’ (CIAB) quarterly commercial P/C market index survey.
Prices for small, medium and large accounts eased by a modest -0.5 percent during the second quarter, compared with 1.5 percent in the first quarter, said the report.
Brokers across the US reported that carriers were aggressive on new business, but overall willing to negotiate terms and conditions and/or price to keep good business on the books.
Pricing for property fell into negative territory with a -2.6 percent drop last quarter compared with flat pricing in the first quarter.
Over half of the brokers that were surveyed perceived the lack of political leadership in the country as a major problem. Other challenges include the economy and the lack of jobs, along with the impasse over federal budget and deficit issues.
Ken Crerar, president and chief executive officer of CIAB, said: “The commercial market continued along the same path as it travelled in the first quarter. Pricing responded predictably to strong competition and plenty of capacity to underwrite most commercial lines. As for the second half of the year, it will depend on the usual factors – catastrophe losses, profitability and capacity.”
CIAB, North America, Ken Crerar, Second Quarter 2014 Results