The falling insurance rates for commercial property-casualty insurance continued for a third year in January with a 9 percent dip on a composite basis, according to one leading exchange.

MarketScout, the Dallas-based commercial insurance market exchange, said rates have not risen on an average basis since January of 2005.

In the latest MarketScout report general liability rates were found to have dipped the most at 9 percent, while commercial auto declined only 3 percent. Both commercial property and business interruption declined 5 percent. Surety showed the least decline at 1 percent.

MarketScout Chief Executive Officer Richard Kerr said that the year is starting with underwriters cutting rates in every single line of coverage. “Many wholesalers and surplus lines insurers are losing business to aggressive admitted markets as they cut pricing and expand class codes,” Mr. Kerr said.

Just about any business that pays over $100,000 in premium can generate savings if they organize a competitive bidding situation. “Many accounts are now moving to new insurers. Of those that move, almost 33 percent are doing so with a new agent or broker,” he added.

If 2007 records heavy catastrophe losses, he said, property catastrophe rates would soar, but other lines would probably not see much impact.

“Despite the wishes of some insurance company executives, hurricane activity did not and will not impact nonproperty coverages,” Mr. Kerr said.

By size, those accounts with over $1 million in premium showed declines of 11 percent, while the smallest accounts declined by about 7 percent.

By industry class, manufacturing led the declines with 10 percent, while rates for public entity and transportation cover dipped only 3 percent.

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