U.S. property and casualty insurance price declines stabilizedlast month, averaging the same 12 percent cut as in March, whilethe softening market continued to impact some lines more heavilythan others, according to MarketScout's “barometer” survey.

However, the Dallas-based insurance exchange said it is far fromclear whether the softening market has hit bottom. “Insurerscontinue to aggressively seek new business by broadening coveragesand decreasing premium,” said Richard Kerr, MarketScout's chairmanand chief executive officer.

“Only the most disciplined, mature companies are maintaining amoderate approach,” he said. “Many new insurers don't have thatluxury because they raised capital based upon pro-forma businessmodels, which assumed certain levels of premium to amortize theexpenses related to staffing, automation, rating and claimssystems.”

Mr. Kerr said the firms that counted on certain premium levels“are forced to price aggressively in order to write enough businessto justify their fixed processing and administration expenses. Ifthey don't write the business, they will certainly make aloss.”

Those companies, he said, “justify their low rates by assumingthe premium volume will at least help amortize their expenses andperhaps they will even get lucky and generate a profit–a verydangerous game indeed.”

By coverage class, workers' compensation reported the steepestdrop at 13 percent. Commercial property (12 percent), generalliability (12 percent), business interruption (11 percent),umbrella/excess (11 percent) and employment practices liability (11percent) saw double-digit drops as well.

The MarketScout exchange platform is available online athttp://www.marketscout.com.