CIAB — The Soft Market is Here

A recent survey from the Council of Insurance Agents & Brokers (CIAB)’s finds for the first time since the 2017’s third quarter, we are seeing a soft market. Average premium rates dropped 1.2% for all account sizes.

• Premiums for large accounts fell an average of 2.7%

• Medium account premiums are down 1.9% on average

• Small account premiums went up a little at 1.1%

• However, that is a 60% drop from the 2.8% rise in the 4th quarter of 2025

Rates fell for all nine major lines of business:

• Business interruption

• Commercial property

• Construction risks

• Cyber

• D&O

• Employment practices

• Marine

• Terrorism

• Workers compensation

The CIAB report says commercial property premiums had the sharpest decline with an average of 5.8%. Non-catastrophic had the biggest change in premiums and underwriting.

“Numerous respondents reported the common signs of a soft market: lower pricing, more flexibility in underwriting terms, more overall appetite, including for business they may have been rejected at previous renewals,” CIAB said.

Commercial auto premiums rose 5.8%. For the third straight quarter that line saw the biggest increases. It has seen large increases for the last five years because of high claims frequency caused by distracted driving and congested roads.

Source link: Insurance Journal — https://bit.ly/49B7Vxn