Stiff competition coupled with weak demand has resulted in flat pricing rates in the US, according to a survey by the Council of Insurance Agents & Brokers (CIAB).

The numbers from the Commercial P&C Market Index Survey are an improvement on the result from the past four quarters, which showed a persistent decline.

Brokers also reported a tough attitude towards accounts by insurers as they try to maintain pricing.

“Appetite to write accounts has diminished as a few carriers have stopped writing certain classes of business,” according to one broker.

Another says the pricing for poorly performing accounts increased. “The carriers were willing to let an account go rather than agree to a flat renewal,” said another broker in the US northeast.

Pricing in the US commercial property and casualty market edged up slightly in the third quarter, with the CIAB saying small accounts rose by 2.1% and medium accounts by 1.1%. Large accounts declined by 0.6%.

But CIAB President Ken Crerar isn’t calling the end of the downturn yet.

“We really didn’t see any significant trend last quarter,” he said. “There’s still plenty of capacity in the market to dampen prices.”

The survey report says the average premium has increased by 0.9% so far this quarter, boosted by a 4.1% jump in workers’ compensation prices and a 3% rise in commercial property rates.

In the third quarter of 2010, there was an average decline of 5.2%.

The survey finds US demand for insurance in the third quarter is also flat with 39% of brokers – the same number as in the second quarter – reporting no pick-up in business.

“The economy and market conditions are still keeping brokers awake at night,” Mr Crerar said.