The US-based Risk and Insurance Management Society (RIMS) believes the results of its latest benchmarking survey indicate the US soft market may be “near bottom”.

It cites a “lack of substantive change in average renewal premiums… in the second quarter” as evidence of the US commercial market bottoming out.

The RIMS survey tracks general liability, property and workers’ compensation rates, and found that premiums in all three classes of business fell by less than 1% on average for the quarter.

Directors’ and officers’ insurance continues to soften, with rates renewing 4.5% lower on average.

Dave Bradford, the survey’s editor, says pricing has “been fairly stable in three of the last four quarters, but it is too early to declare the soft market over”.

“Rates may have stabilised for now, but barring major catastrophe losses, there are few signs of materially higher premiums on the horizon.

“The commercial property and casualty insurance market remains well capitalised, and the current sluggish economy could make it difficult for underwriters to push through rate increases.”

The survey notes that despite the record-breaking first-half losses, the “impact has not been sufficient to trigger widespread premium increases outside some of the affected areas”.