“Overall, the commercial market remains soft for all sizes of accounts,” the Washington-based CIAB said in a statement announcing the survey. “Brokers said third-quarter renewal rates for the majority of accounts, regardless of size, were significantly lower than during the second quarter, with only a handful of renewal premiums showing no change,” said the CIAB.
For example, 63% of brokers said premiums for their large accounts—those that generate more than $100,000 in commissions and fees—were 1% to 20% lower than second-quarter renewals; 20% reported premiums drops of 20% to 30%; and 8% reported renewal premiums down 30% 40%.
A Lehman Bros. analysis of the CIAB survey showed the average premium rate for all sizes of accounts was down 13.3% in the third quarter compared with second-quarter renewals. The Lehman analysis said large account premiums were down an average of 15.9%, with medium-size accounts down 15% and small accounts down an average of 8.9%.