The much-anticipated hard market in commercial lines is taking its time to develop, as rates for U.S. commercial property/casualty premiums idled during the second quarter of the year, according to The Council of Insurance Agents & Brokers' (CIAB) quarterly Commercial P/C Market Index Survey.
"We saw no significant change in pricing trends from the first quarter to the second quarter," CIAB president Ken A. Crerar said in a release. "If a hard market is coming, it's up the road a bit. The pricing appears to be more a result of the weak economy than capacity."
Overall rate declines for small, medium and large accounts were fairly consistent, including decreases in the first quarter of the year, according to the CIAB.
Average commercial rates in the United States declined 4.9% in 2009 Q2, compared to a 5.1% decline in Q1.
Large accounts, on average, declined 6.7 %, compared with a Q1 decline of 6.4%. Mid-sized accounts remained roughly the same with a decline of 5.7%.
The rate of decline for small accounts was 2.5%, compared to a 3.3% decrease in Q1.
Commercial auto rates were down 4.1% in Q2, whereas commercial property rates were down 3.3%.