MarketScout Survey: Rate Decline Steady For 2nd Month 

NU Online News Service, May 6, 1:40 p.m. EDT

The April composite rate for property-casualty coverages was down 7 percent, unchanged from the previous month, according to Dallas-based MarketScout, an online insurance exchange.

The exchange’s Chief Executive Officer Richard Kerr said in a statement that rates were unchanged in several classes of business, but workers’ compensation exhibited some softening. The rate of decline for workers’ comp went from negative 7 percent in March to negative 8 percent in April.

Also showing increased softening in rates were umbrella/excess, which went from negative 6 percent in March to negative 7 percent in April, and surety, going from negative 4 percent in March to negative 5 percent.

Five lines exhibited signs of continued firming by 1 percent:

• Commercial auto went from negative 7 percent in March to negative 6 percent in April.

• Directors and officers liability went from negative 5 percent in March to negative 4 percent in April.

• Employment practice liability insurance went from negative 6 percent in March to negative 5 percent last month.

• Fiduciary went from negative 5 percent in March to negative 4 percent.

• Crime went from negative 6 percent in March to negative 5 percent in April.

Six lines—commercial property, business interruption, businessowners policy, inland marine, general liability and professional liability—remained unchanged.

Taken by account size, small and medium-size accounts remained unchanged, coming in at negative 7 percent, and large and jumbo accounts stood at negative 8 percent.

Reviewing industry class, both manufacturing and transportation remained unchanged.

Public entity had the biggest change, firming from negative 7 percent in March to negative 5 percent in April. Contracting softened 1 percent, from negative 7 percent in March to negative 8 percent in April.

Also exhibiting signs of continued firming were service, from negative 8 percent in March to negative 7 percent; habitational, going from negative 7 percent to negative 6 percent in April; and energy, going from negative 6 percent to negative 5 percent last month.

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