RIMS Benchmark Survey shows the soft commercial insurance market is continuing

Premiums continued to tumble for commercial insurance buyers in 2009 Q4, with few signs that the soft phase of the pricing cycle is nearing the end, according to the RIMS Benchmark Survey.
The survey, administered by Advisen Ltd., tracks changes in insurance policy renewal prices as reported by North American corporate risk managers.
Directors and officers’ liability and general liability posted decreases in average premiums, while property held steady again.
General liability saw the largest decrease, with average declines in renewal premiums of 5%.
Average D&O premium fell 2.8%.
Property remained relatively unchanged, falling less than half a percentage point, according to the survey.
“While market conditions are benefiting insurance buyers, they are contributing to growing financial stress on agents and brokers that derive much of their income from commissions on insurance premiums,” according to a release.
“Not only is commission income down because of falling rates, the global recession has cut into insurance premium volume as companies downsize or go out of business.
“Insurance companies are also suffering from lower premium volume, but the impact is lessened by income from invested assets and by favorable claims experience due to the fact that no major natural catastrophes occurred in the United States in 2009.”