The US-based Council of Insurance Agents & Brokers (CIAB) says there are “signs that an appetite for new business is returning to the insurance marketplace”, with its second-quarter survey even showing some significant premium falls.  

The survey, released yesterday, says the US market is levelling and premiums are beginning to creep downwards in some areas. CIAB members place more than 80% of US commercial property/casualty business.

Its president, Ken Crerar, said levelling “does not mean a soft market is returning”, warning that industry analysts say the hard market is likely to last another 18 months.

The survey also showed that brokers are increasingly concerned about insurers’ rating downgrades and solvency.

8% of large commercial accounts saw their premiums increase by as much as 20% during the second quarter, while 8% experienced no change in premiums; another 8% said their rates dropped by as much as 10%, while 4% of large accounts experienced premium decreases of 10-30%.

Small and medium accounts also stabilised, although not as dramatically as the larger accounts. Two-thirds of the small accounts experienced premium increases of as much as 20%, while 70% of the medium accounts also hit increases of 20% or more.

But 15% of small accounts and 11% of medium accounts reported no change, and 7% of small accounts and 8% of medium accounts reported decreases of up to 20%.

“The survey shows that insurers are beginning to seek out new business again, although problems with price and availability still linger in some areas,” Mr Crerar said. “The biggest trouble spots are medical malpractice, workers’ compensation and some of the liability areas such as D&O. Carriers are still picking and choosing what they will write very carefully in these lines.”

Nevertheless, 83% of the brokers surveyed said they are seeing evidence of commercial lines stabilising.

Terrorism insurance is more available in the market than it was six months ago, according to 85% of the respondents. But 72% said their commercial customers aren’t buying it.