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US property and casualty market remains soft

Hot competition for new business continues to dictate US property and casualty rates with premiums falling by an average of 4.9% in the second quarter.

The Council of Insurance Agents & Brokers’ quarterly commercial market index survey has found no significant change from the first quarter, when premiums fell 5.1%.

Large accounts fell an average of 6.7% during the quarter, while midsize accounts fell 5.7%. Rates on small accounts dropped by an average of 2.5%.

“If a hard market is coming, it’s up the road a bit,” council President Ken Crerar said.

US brokers claim the insurers are chasing new business with aggressive discounts at the expense of renewal business, where rate increases are more common.