Commercial insurance premiums in North America are continuing to fall, according to the annual benchmark survey by the Risk and Insurance Management Society (RIMS).

The full results for 2005 show US and Canadian insurers are continuing to compete hard for business, with lower premiums the inevitable result.

The hurricane season had a big effect on the US gulf states, but the effect on the overall insurance market was much less dramatic. Fears of steep premium rises quickly eased, and the aggregate capacity of the industry actually rose over the year.

RIMS says the US and Canadian general insurance industry turned a profit in 2005, despite falling prices and a projected $58 billion ($76.4 billion) in hurricane losses.

David Bradford, the editor-in-chief at Advisen, which conducted the research for RIMS, says insurers are experiencing strong earnings surpluses. “Rate levels are still stalwart and capacity is abundant in most lines,” he said. “Conditions are ripe for further softening.”

The RIMS survey is one of the most respected research programs in the North American industry. The 2005 book used data from more that 1400 insurance programs – the largest number of respondents in the survey’s 25-year history.