Despite nineteen consecutive monthly increases in commercial P&C rates, we may be nearing the end of consistent premium increases. As we first wrote in 2012, we considered the market a stabilization of insurance rates, not a market hardening. Now, thanks to additional reinsurance capacity – Berkshire Hathaway and two insurance companies from China – the rising climb in some commercial rates (e.g., property insurance) may soon reverse course.
What to expect for the remainder of 2013? Educational institutions can anticipate current conditions to prevail for the short-term. For the long-term, in the absence of major catastrophic losses, we anticipate an improved rate environment in the latter part of 2013.