Rates are continuing to fall in financial, executive and professional lines of insurance, according to a Willis survey of UK insurers.

The broker’s financial executive and professional risks (Finex) division’s latest quarterly report into the market reveals rates for financial institutions, D&O and PI insurance are close to seven-year lows, with premiums approaching 1999/2000 levels in some areas.

In the third quarter, premiums for financial institutions insurance were discounted by an average of 10% and there was no sign of a turnaround, with most respondents predicting the soft market would continue well into next year.

In the D&O market, 23% of insurers reported flat-rated renewals, while those respondents reporting reductions thought they would ease slightly to less than 10% for the fourth quarter. And PI rates continued to fall “across the entire arena”.

Finex Chairman Roland Avery said the buyer’s market is likely to continue through next year. But he warned the slump in the subprime mortgage market and the economic slowdown “have the potential to change the landscape dramatically”.