Main Street Industry News - August 2015

Page 12

Top Stories

Commissions Fall with Commercial Pricing For insurance it seems to be either boom or bust. We all see the softening of the insurance market. And bust in this case means dwindling commissions. Here are some stats from the Council of Insurance Agents and Brokers (CIAB) that bear the statement out. Commission decline starts with commercial insurance pricing.

•  The price drop on all commercial accounts average 2.3% •  Large accounts cut prices by 3.7% on average in the first quarter of 2015. •  Medium accounts dropped 2.7% To compare this year with last, in the fourth quarter of 2014 prices declined 0.7%. CIAB President and CEO Ken Crerar said the price drop is due to the growing soft market, more competition for business and from low catastrophe losses. “The trend of falling prices we saw in the fourth quarter of 2014, continued into the first quarter of this year. Last quarter, buyers gained some advantage as pricing slid across the board and across all regions for most lines of business.”

August 2015 | Main Street Industry News | www.pianeia.com | 12


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