The commercial property/casualty insurance market should remain stable and profitable in 2015, according to the Wells Fargo Insurance 2015 Insurance Market Outlook.
Abundant market capacity and an improving economy have positioned the commercial insurance industry for an extended soft market in 2015, said Kevin Brogan, head of the Property and Casualty National Practice at Wells Fargo Insurance, in a statement.
“Despite rate reductions—forecast to be in the high single to low double digits—the market should see sustained underwriting profitability and attract new capital as a result of GDP growth and rising interest rates,” he said.
Key findings of the Wells Fargo report include:
- Workers comp rates are expected to decrease 5-10 percent.
- Property-catastrophe rates are expected to decrease 10-20 percent.
- Despite the large catastrophic losses for aviation in 2014, overcapacity in the sector will keep premiums low.
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