Increased competition in the SME product space means rates for business packages will be fairly flat, according to a Finity market report prepared for the Steadfast broker network.

“[A] large number of new entrants has increased competition and capacity, taking market share off the larger insurers,” the report says.

“We expect an influx of capital over the coming 12 months, with new entrants offering fresh approaches in a low-expense environment, aided by technology.”

Most other business classes will continue to see rates harden and capacity to tighten, the report says, as it predicts more difficulty placing risks without material rate increases.

Financial lines, workers’ compensation and liability are in line for higher rates, the report says.