Across the spectrum of small, medium and large accounts, commercial property/casualty market premiums showed definitive signs of leveling off in the fourth quarter of 2008. The Council of Insurance Agents & Brokers’ Commercial P/C Market Index Survey said that premium rates eased as insurers tried to keep pricing stable. The council stated that it may “signal the bottom of the soft market, following six years of steady decline.”

Interesting survey figures from the fourth quarter of 2008:

43% of respondents said premiums for small accounts were down 1 to 10%
35% of respondents reported no change in premiums compared with the third quarter of 2008
50% said premiums were down 1 to 10% for medium accounts
17% said decreases were in the 10 to 20% range for medium accounts
18% said there was no change in rates for medium accounts compared to the third quarter of 2008
41% said rates decline 1 to 10% for large accounts
17% said there was a 1 to 10% increase in regards to D&O premiums
36% reported no change in rates for D&O
21% said D&O premiums declined 10 to 20%  

The survey also revealed that 59% of respondents said customers were cutting back on insurance due to the economic crisis. The first quarter of 2009 will provide more interesting information as to the state of property/casualty premiums and the insurance sector as a whole.

Don’t forget to check back for more!

Emily Holbrook
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