Via Insurance Journal:
Commercial property/casualty premiums for all sizes of accounts dropped sharply during the first quarter of 2007, with indications that insurance companies are starting to loosen underwriting standards and price aggressively to get business, according to the latest Commercial Property/Casualty Market Index by The Council of Insurance Agents & Brokers.[.]
One broker from the Northeast, calling the premium drop “dramatic,” said rates in the most recent quarter fell more sharply than during all of 2006.[.]
The article mentions that in addition to softening of the market in terms of price, underwriting has also eased.
Of course, none of this applies to the Gulf and south Atlantic coasts, where being concerned about cat aggregations is still sexy. (We’ll just ignore aggregation issues in the Pacific Northwest and in the New Madrid zone..)
Ah, the profits of 2006 were nice while they lasted.
It would be nice to believe that what’s being reported is a simple transition to an intelligent, competitive posture. However, I’ve heard a few too many underwriters complaining about the insanity of their competitors’ actions to believe that is really the case.