Next year promises no relief from soft commercial rates that have plagued US property and casualty insurers since 2004, according to analysts Advisen.

A new briefing says the damaged economy will keep a lid on premiums, while sales, payroll and other measures of exposure used to calculate rates will fall further.

“The cumulative net effect will be another year of lower written premiums – a boon for insurance buyers, but a painful and potentially damaging situation for some insurers and, especially, brokers,” Advisen said.

Narrow market segments such as financial institution directors’ and officers’ (D&O) cover are the exception this year with their premium rises.  

The briefing says workers’ compensation rates have been especially hard hit by skyrocketing unemployment.

Prices in lines such as general liability and commercial D&O are tipped to erode further before reaching the bottom of the cycle.

“The average general liability premium has surrendered all the gains of the 2001-03 hard market, and is now at 2000 level,” Advisen said. “The average workers’ compensation premium is close behind.”