Some of the most dramatic changes in US insurance markets last quarter were in commercial rates, according to a Risk and Insurance Management Society (RIMS) benchmark survey.

The survey found significant momentum for the softening market, with some of the year’s greatest reductions occurring in the three months to December 31. The biggest falls were in D&O (5.1%) and workers’ compensation (7.4%).

Property rates were up 6.6%, according to the survey of renewal prices. RIMS Secretary Joseph Restoule says this shows the 2005 hurricane season is only just beginning to affect future insurance contracts.

“Risk managers have benefitted from lower premiums in most lines of business, but continue to be challenged by skyrocketing property catastrophe premiums,” he said.

However, there may be light at the end of the tunnel for that sector.

“We’ve now gone a full renewal cycle since the catastrophes in 2005,” he said. “There are reasons to be optimistic that the market for catastrophe coverage will stabilise and even improve in 2007.”

Advisen Editor-in-Chief David Bradford, who helped analyse the RIMS data, says if rates fall in US property classes they will plummet throughout the industry in 2007.

“Greater capacity resulting from a very profitable 2006 means that underwriters are going to be under pressure to slash rates further in 2007. Even risk managers with coastal property exposures should see improvements this year.”