MarketScout: Composite Prices Flat In February

NU Online News Service, March 9, 1:55 p.m.EST?Online insurance exchange MarketScout reported thataverage property-casualty policy rates stayed flat in February withno monthly increase for the first time in the current pricingcycle.[@@]

According to the Dallas-based MarketScout, which gathersinformation from its national distribution system of 50,000 retailinsurance agents, the past month's renewals generated a compositerate with no price hike.

This is the first time that the average pricing showed noincrease since MarketScout started keeping track of composite ratesin July 2001.

MarketScout CEO Richard Kerr wrote in an announcement of therates that, "This is the first time in over four years thatrenewals are being placed with a composite average of a zeropercent rate increase." MarketScout's finding was also supported bya separate, independent survey of 1,100 agents conducted by TheNational Alliance for Insurance Education and Research in February,Mr. Kerr said.

Among specific coverages and industry groups, MarketScout founda slight rise in general liability and for tougher classes such asproducts liability, while general liability rates for owners,landlords and tenants exposures were down slightly.

The company reported that directors and officers coveragecontinues to fall modestly, mostly as a correction on the massiveincreases of prior years. Other findings include:

? Workers' compensation rates are falling.

? Accounts up to $500,000 premium are experiencing slightdecreases.

? Accounts from $500,000 to $1,500,000 in premium areexperiencing moderate declines, while jumbo accounts areexperiencing more aggressive rate decreases.

? Manufacturing, service and public-entity sectors are renewingat no increase.

? Habitation and energy accounts continue to suffer the highestpremium hikes.