The downward spiral of insurance rates showed moderating signslast month with a 14 percent composite decrease, one point lessthan January, according to an insurance exchange report.

Dallas-based MarketScout said its figures, based on itsinsurance exchange transactions, shows the composite decreasecontinues to slow, moving from 16 percent in December to 15 percentin January and 14 percent for February.

“Premium reductions are strongest in the service contractorindustry group,” said Richard Kerr, founder and chief executiveofficer of MarketScout, in a statement.

“General liability coverage for a service contractor with totalpremiums of $25,000 to $100,000 is the most price competitivesegment of the U.S. [property-casualty] markets as of February2008,” he related.

Mr. Kerr said, “Rate reductions are moderating in a select groupof industries and coverages. In particular, oil and gas contractorsare not seeing price reductions as dramatic as what they enjoyed in2007.

“Also, many state mandated workers' compensation rate reductionswere implemented in 2007, so premium reductions should moderate in2008 unless insurers begin to aggressively apply credits, therebyreducing the ultimate premium.”

By class of business, commercial property was down 17 percent,the largest decline of 13 classes listed. Business interruption andgeneral liability were not far behind with a 16 percent decline.Workers' comp, fiduciary and crime experienced the least decreaseat 8 percent. Surety was close at 9 percent decrease. The remaininglines were down 12-to-15 percent.

Of the four account sizes, medium accounts (premium between$25,001 and $250,000) experienced the sharpest decrease at 16percent, followed by small accounts (premium up to $25,000) at 15percent. The remaining two, large accounts (premium between$250,000 and $1 million) and jumbo accounts (premium north of $1million) were down 13 percent and 14 percent, respectively.

By industry class, contracting and service were both down 16percent, followed by manufacturing and habitational at 15 percent.Rounding out the industry class, transportation and energydecreased 13 percent and public entity showed the least decrease at12 percent.