MarketScout Finds Composite P&C Rates Fell 4% In January 

NU Online News Service, Feb.8, 9:58 a.m. EST

MarketScout electronic insurance exchange reported finding no end to the soft market last month with the composite U.S. property and casualty sector down 4 percent.

“The current soft market cycle seems to have no end,” according to a statement from Richard Kerr, chief executive officer of Dallas-based MarketScout.

“We are in the market doldrums and will be here until something changes. Insurers must be patient. Rates will adjust, but nothing will happen quickly without a cataclysmic event of significant magnitude,” Mr. Kerr said.

He added that while the composite rate remained at minus 4 percent, his firm noted rates for service, public entities and energy decreased further with public entities moving from minus 3 percent to minus 5 percent.

In addition, his report mentioned that directors and officers liability—one of the only coverages that went several months in 2009 without rate decreases—slipped back and was hit with an average rate decrease of 2 percent for January 2010.

The National Alliance for Insurance Education and Research conducted pricing surveys used in MarketScout's analysis of market conditions. MarketScout said NAIER surveys corroborate its actual findings, which are mathematically driven by actual new and renewal placements across the United States.

The company said that by coverage class seven sectors were down by 4 percent: commercial property, business interruption, business owners policy, inland marine, general liability, umbrella/excess and commercial auto.

Directors and officers liability was down 2 percent. Five sectors were down 1 percent: professional liability, employment practices liability insurance, fiduciary, crime and surety.

By account size: large accounts $250,001 to $1 million were down 5 percent; jumbo accounts over $1 million were down 4 percent as were medium accounts of $25,001 to $250,000; small accounts up to $25,000 were down 3 percent.

By industry class: public entity and service were down 5 percent; manufacturing was down 4 percent; contracting, transportation and energy were down 3 percent; and habitational was down 2 percent.

• • 2/9/2010 11:31:59 AM
  • Joe Skeptical
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