NU Online News Service, Dec. 06, 10:30 a.m.EST
|The soft-market cycle is over, according to MarketScout.
|Richard Kerr, chief executive officer of the insurancedistribution and underwriting company, says that “the soft-marketcycle has finally broken” after nearly seven years.
|“November 2011 is the first composite-rate increase since thesoft market began in February 2005,” he adds in the company'sNovember Market Barometer report.
|Compared to the same month a year ago, commercial rates forevery coverage class are at least flat, with 2 percent increase incommercial property, business owners' policies, and workers'compensation.
|Broken down by industry class, 1 percent increases were seen inmanufacturing, contracting, habitational, transportation andenergy. Rates were flat for service and public entity classes.
|Rates were down for transportation and energy when compared toMarketScout's analysis in October. Transportation was up 3 percent and energy was up 2percent in October, according to MarketScout.
|The only downward rates seen in MarketScout's November analysiswere witnessed when results were broken down by account size. Jumboaccounts (over $1 million) measured a 1 percent rate decrease.
|Small accounts (up to $25,000) were up 2 percent, mediumaccounts ($25,000 to $250,000) were up 1 percent and large accounts($250,000 to $ 1 million) were flat, according to MarketScout.
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