NU Online News Service, July 20, 11:27 a.m. EDT

There appears to be no letup in the commercial property andcasualty soft market, as average premium prices deteriorated aftershowing some signs of stability over the past year, according to aproducer association.

The Council of Insurance Agents & Brokers' (CIAB)"Commercial Property and Casualty Market Index Survey" of 160respondents found that average premium rates for the second quarterof 2010 declined 6.4 percent. This compares to the previous month'sdecline of 5.3 percent.

Since the second quarter of 2009, rate declines have hoveredaround 5 percent. Washington, D.C.-based CIAB's recent surveyresults marked a departure from what some have said may be signs ofa stabilizing market.

In comments accompanying the survey, CIAB said, "Excess capacitychasing market share in the commercial property and casualtymarketplace has resulted in another quarter of declining renewalpricing."

"It's the same old story," said CIAB President Ken A. Crerar ina statement. "Carriers continue to fight aggressively for newbusiness as capacity flows into the market. It's like someoneforgot to turn off the spigot. No one seems to know when thereservoir will dry up, but in the meantime, it's definitely abuyers' market."

By account size, small accounts experienced a decline of justover 3 percent, keeping in line for the past four quarters.

However, midsize accounts came in with a decline of 7 percent, ajump from the previous month's 5.7 percent.

Large accounts declined 8.9 percent compared to 7.4 percent overthe previous three quarters.

The CIAB said that in anecdotal comments that accompanied thesurvey, many respondents said capacity remains abundant and that itis beginning to affect terms and conditions in some cases.

There was no notable change in customer demand, the CIAB noted,saying that only 26 percent of those surveyed said demand was up,about the same as it was in the first quarter.