Average rates for commercial property/casualty insurance barely moved in the third quarter of 2014, the quarterly pricing survey released by the Council of Insurance Agents & Brokers finds.
The Council’s Commercial P/C Market Index Survey released Wednesday found that average rates for all accounts increased 0.1% in the third quarter, compared with a 0.5% decrease in the second quarter of 2014. During the third quarter, small accounts experienced the largest average price increase, 1.1%, while prices for large accounts fell 1.1%, the survey found.
By coverage line, the largest increases were in employment practices liability, where rates rose 3.1%; commercial auto, up 2.6%; and workers compensation, where rates increased 2.3%. In other major lines, directors and officers liability rates increased 2.2%, general liability rates inched up 0.6% and commercial property rates fell 1.6%.
“We didn’t see much change in pricing or underwriters’ approach over the last quarter compared to the second quarter,” Ken A. Crerar, president and CEO of The Council said in a statement. “Capacity remained plentiful, and underwriters were still eager for new business.”
According to The Council, the already ample capacity in the market was bolstered further by specialty carriers, including Berkshire Hathaway Specialty Insurance, which entered the market last year. In addition, the relatively calm catastrophe season helped keep coastal property rates stable, the survey notes.