Before Hurricane Katrina hit the Gulf Coast--perhaps causing arecord insured loss of over $20 billion--the property-casualtymarket continued to soften last month, with rates down an averageof 6 percent in August, according to MarketScout.com, an electronicinsurance exchange.
As in the past few months, the bigger the account, the biggerthe average decline in prices on a percentage basis. "Jumbo"accounts of over $1 million in premium saw rates fall an average of12 percent, compared with "small" accounts with up to $25,000 inpremium, at 5 percent.
"Post-Katrina, we expect the general property market tostabilize for a few months by offering renewal terms with rates asexpiring, as opposed to the reductions we have seen in priormonths," according to Richard Kerr, chairman and CEO ofDallas-based MarketScout.com. Commercial property rates were downan average of 7 percent last month.
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