Correction: SFRI falls 9%

October SFRI fell 9% to 0.86. This is a correction from an earlier post that showed an increase. The declines were driven by a drop in primary demand over the month as the financial crisis reduced business activity and construction projects. Both domestic carriers and Lloyds are doing their best to hold rates constant. Most are sticking to expiring rates for renewals. However, at the same time, underwriters are being more liberal on new business. The combination of lower demand, higher price sensitivity, and increased carrier switching is creating an environment of rate decline.