Price reductions in property cover, liability, workers’ compensation and other lines combined to push down the average cost of risk by 3% last year, new data shows.

The Risk and Insurance Management Society and insurance data group Advisen say the average risk cost fell from $US10.07 ($11.84) per $US1000 ($1360.73) of revenue in 2016 to $US9.75 ($13.27) – marking the fourth consecutive year of decline.

Record high natural catastrophe losses had little impact as market conditions continued to favour buyers.

“A competitive insurance market resulting from a chronic overabundance of risk capital has strongly contributed to [risk cost] decreasing steadily since 2013,” Advisen Chief Strategy Officer David Bradford said.

“Not even record catastrophe losses could derail the downward trend.”

Insurers’ hopes for a sharp upturn in rates, similar to that seen in 2001/02 when commercial rates gained 50%, are likely to be dashed.

“Prices may rise, but most likely they will be quickly beaten down by fresh capital flowing into the market,” Mr Bradford said. “That is good news for risk managers.”