A survey of 135 UK-based risk managers has found that commercial property and business interruption rates in the UK are continuing to fall. 

The second annual benchmarking survey, conducted by UK risk managers organisation Airmic and research firm Advisen, revealed that more than half of all respondents said their property damage and business interruption rates fell at their last renewals. 

14% reported falls of less than 5%, 25% said their rates fell by 5-10%, a further 11% reported premium decreases of 10-20% and 3% said their rates dropped by more than 20%.

According to the survey, 34% of risk managers reported no change to the price of coverage at their last renewal, while 14% recorded premium rises, though these were mainly of less than 5%.

Airmic Technical Director Paul Hopkin says this is “the eighth year of benign conditions for buyers in this class of business, and one has to ask whether it can accurately be described as a soft market anymore or whether it has perhaps become the ‘new normal’”.

“The fact that even the recent spate of large natural and other catastrophes could not budge rates upwards suggests that they are likely to remain depressed for a while yet.”

But many insurance buyers are anticipating rate rises, with 31% expecting increases of less than 10% and 11% predicting rate rises of 10-20% in commercial property and business interruption.