Soft market picks up speed

According to the latest data from the RIMS Benchmark Survey, commercial lines insurance prices fell and fell faster than before.

Advisen produces the survey for RIMS and uses data as reported by U.S. risk managers who buy insurance for corporations. Other surveys use anecdotal data while ours uses empirical data.

The chart above shows the composite premium index in black as compared to the D&O premium index in yellow and the property index in blue.

The chart to the right shows the quarterly rate of change.

There are a few notable data points:

1. The rate at which the composite premium index falls is steadily increasing meaning the soft market is showing no signs of abating.
2. Property rates had increased since the storms of 2005 but January policy renewals show the first decline since
3. D&O rates are plummeting

For the press release see here, for press coverage, see Insurance Journal and Business Insurance.