Tuesday, November 3, 2015
Business interruption, commercial property, general liability, umbrella, and workers’ compensation were the lines brokers most often noted had a decline in rates in the third quarter of 2015, according to the latest Commercial P/C Market Index Survey from the Council of Insurance Agents & Brokers.
Broker comments came as The Council survey found rates decreased across all lines by an average of 3.1 percent in the third quarter, compared with a 3.3 percent decline in the second quarter of 2015.
Large accounts saw the largest decreases at 4.1 percent, followed by medium-sized accounts at 3.8 percent, and small accounts at 1.4 percent.
The ongoing buyers’ market was consistent across most lines of business, The Council noted, with a few exceptions, including commercial auto and flood both of which saw a slight uptick in rates. Flood continued to be viewed as a troubled peril, brokers said.
Flood insurance rates increased, especially in the Southeast and Pacific Northwest regions, as rate increases, assessments and surcharges continued to be implemented by the National Flood Insurance Program (NFIP) and Write Your Own Carriers.
Ken Crerar, president and CEO of The Council observed that while rates seemed stable and competition plentiful, the brokerage industry is keeping an eye on many factors that may have an impact on insurance placements going forward.
Check out latest I.I.I. information on industry financial results here.