Much the same impression of the state of the market comes from a new report by the US Council of Insurance Agents & Brokers (CIAB). It says the commercial insurance marketplace has witnessed a return to competitive pricing for a number of lines and flattening or decreasing premiums for commercial property coverage.

But US insurance-buyers shouldn’t expect an early return to a softer market, says CIAB President Ken Crerar. “Among the factors likely to moderate any declines in the general commercial market are a still-weak economy, low yields on investments and the continuing need for insurers to build reserves and strengthen their overall financial condition,” he said.

Nevertheless, the third quarter survey showed a marked easing of prices for all sizes of accounts in all sections of the country. Nearly 33% of small and large accounts and 27% of medium-sized accounts experienced no change in premiums, or a drop of up to 10% for renewals and new business in the third quarter.

Half of the brokers responding to the survey said commercial property premiums either held steady or decreased by up to 10% in the August-September period.

But 42% of business interruption accounts, 63% of general liability, 52% of workers’ compensation and 60% of umbrella accounts experienced premium increases in the 1-20% range. Brokers’ own professional indemnity policies were up sharply, as were construction risks, directors' and officers', medical malpractice and general liability coverage.

Mr Crerar said US underwriters are still insisting on tighter terms and conditions when writing renewals.