US commercial rates were down 1% last month, compared with drops of 4% at the start of last year, according to analyst MarketScout.

CEO Richard Kerr says the soft market is now 16 months old, but there’s a way to go.

“We have been tracking commercial property and casualty rates since 2001,” he said.

“Generally the soft or hard market cycles last at least three years.

“We expect more moderate rate reductions for the coming year for all but a few lines of business. If interest rates increase, rate reductions could accelerate.”

Personal lines were up 2% last month.

“We have been tracking personal lines rates since 2012,” Mr Kerr said. “Since then insurers have been steadily increasing rates with the exception of the erratic rate direction over the past 14 months.

“Generally, personal lines insurers do not adjust pricing as aggressively as their commercial brethren.”