US insurers’ commercial premiums increased 4.3% on average in the second quarter, according to the Council of Insurance Agents & Brokers (CIAB).

Small and medium accounts reported the largest increase at 4.3% and 4.9% respectively, the council’s quarterly Commercial Property/Casualty Market Index Survey found.

Large accounts rose 3.7% in the quarter.

This compares with a 4.4% average increase in the first quarter and a 0.1% average drop in the second quarter last year.

CIAB CEO Ken Crerar says the second quarter has been “a tougher market for [US] buyers”.

“Rates continued to climb as insurers tightened the reins on underwriting,” he said. “More business was being pushed into the surplus lines market as carriers pulled back on capacity, particularly for catastrophe exposures.”

Insurers’ catastrophe losses in the first half were $US9.3 billion ($8.9 billion), down from $US24.4 billion ($23.3 billion) last year.

The CIAB survey says insurers nevertheless increased rates and deductibles and reduced capacity on property with exposures.

Demand for insurance did not improve during the second quarter, according to 60% of the brokers responding to the survey. In the first quarter, nearly 60% of respondents said demand did improve.

The CIAB says this may be due to the sluggish US economy or the increase in pricing.

The survey included responses from more than 100 commercial insurance brokerages across the US and was conducted between June 30 and July 27.