NU Online News Service, April 16, 3:28 p.m.EDT

Commercial property-casualty insurance market rates continue toshow signs of stability as premium price reductions continue tomoderate, according to a survey of major insurance brokers.

The Council of Insurance Agents & Brokers released itsquarterly survey of its members that finds average rate declinesfor the first quarter of this year stood at -5.1 percent, slightlybetter than the fourth quarter's decline of -6.4 percent. That wasthe first time in the surveys that the average declines fell belowdouble digits since the first quarter of 2007.

"We saw some rates creeping up as the impact of the weak economyand increases in reinsurance took hold in the primary market," saidCIAB President Ken A. Crerar in a statement. "It was by no means adramatic turnaround and insurers continued to be very competitiveout there, but the line on rates appeared to be holding,particularly on renewals."

According to an analysis done by Barclays Capital EquityResearch for the survey, all size accounts in terms of commissionand fees saw the rate of decline moderate.

The rate of decline for small accounts improved from -4.2percent in the fourth quarter of 2008 to -3.3 percent in the firstquarter of this year. Medium size accounts saw overall decreasesimprove from -7.1 percent to -5.6 percent. Large accounts, definedas more than $100,000 in commissions and fees, improved fromnegative -8 percent to -6.4 percent.

The CIAB noted that a few lines saw increases, such as directorsand officers where 28 percent of the 103 respondents said premiumsincreased 1 percent to 10 percent, an increase from the fourthquarter where only 17 percent said premiums increased in thatrange. Thirty-four percent said they saw no increase while 17percent reported decreases in the range of -1 percent to -10percent.

More brokers also said broker errors and omissions increased inthe range of 1 percent to 10 percent, with 15 percent reporting anincrease in that range compared to only 6 percent in the fourthquarter of 2008.

More brokers also reported 1 percent to 10 percent increases inthe commercial property line (17 percent for first quarter 2009compared to 7 percent fourth quarter 2008), flood insurance (16percent first quarter 2009 compared to 7 percent fourth quarter2008), employment practices (17 percent first quarter 2009 comparedto 5 percent fourth quarter 2008) and surety bonds (12 percentfirst quarter 2009 compared to 3 percent fourth quarter 2008).

The CIAB said among the brokers top concerns were the increasingcosts of doing business and competition with other players in themarket, health insurance reform and insurer insolvency.

Ninety-eight percent of those surveyed said the economic crisisand soft market are affecting their business, driving downexposures and the amount of money clients can spend oninsurance.

The top political issue remained the economic crisis, CIAB said,with 97 percent of those surveyed listing it as their number oneconcern. The budget/trade deficit and foreign policy were amongtheir other top concerns.