It’s the eighth consecutive quarter (actually a 1% decline).
Five lines – commercial property, professional liability, D&O liability and EPLI all showed declines for the fifth quarter in a row.
Small and mid-market accounts were flat; large and specialty accounts showed declines.
The survey also indicated AY10 loss ratios are 5 points higher than in 2009, which were themselves 2 points higher than 2008.
Claim cost inflation was 4%, in line with long-term averages. (Last year claim cost inflation was -2%.)
Quoth Bruce Fell, director of Towers P&C practice in the Americas: “Our survey results for 2010 support the contention that the economic recovery will be accompanied by higher cost trends, and those estimates could increase if additional ‘catch-up’ from 2009 negative trends — beyond a return to long-term averages — would occur with rebounding economic conditions.”