A survey by the Council of Insurance Agents and Brokers in the US shows substantial rate reductions in the commercial property/casualty market for 2004.

According to the council’s quarterly commercial market index survey, more than 80% of large commercial accounts and 90% of medium accounts in the sector experienced a drop in rates of up to 20% in the final quarter of last year.

30% of smaller clients experienced no change in premium, 42% had reductions of 1-10% and 12% dropped 10-20%.

Large clients paid substantially less for their policies, with 34% reporting a drop of 10-20%.

Brokers reported they found insurers “are more aggressive in seeking new business, although they seem to be trying to hold the line on renewals”.

“There were some reports of relaxed underwriting, but the trend was not widespread.”