An electronic insurance exchange said its data for February shows that the composite rate index for property-casualty insurance is

down 10 percent for the month and there were no rate increases in any line of coverage.

Richard Kerr, chairman and chief executive officer of Dallas-based MarketScout, which produced the report, said, "Barring a catastrophic wind season or other natural catastrophe, 2007 will be a tough year with rate decreases continuing throughout the year."

He added that "as is true with the stock market, the insurance market will correct itself at some point. Strategic investors are positioning themselves to capitalize on the market turn."

"It's coming, just not anytime soon."

By coverage class, February rates fell by the following amounts:

o Commercial property--9 percent

o Business interruption--8 percent

o Inland marine--7 percent

o General liability--11 percent

o Umbrella excess--12 percent

o Commercial auto--6 percent

o Workers' compensation--10 percent

o Professional liability--7 percent

o Directors and officers liability--7 percent

o Employment practices liability--8 percent.

o Fiduciary--3 percent

o Crime--4 percent

o Surety--2 percent

According to MarketScout, the rates fell 7 percent for small accounts (defined as those with up to $25,000 in premiums), 9 percent for medium-sized accounts (those with premiums ranging from $25,001 to $250,000), 11 percent for large accounts ($250,000 to $1 million), and 11 percent for the largest accounts (over $1 million).

Rates by industry class dropped 11 percent for manufacturing, 7 percent for contracting, 9 percent for service, 7 percent for habitational, 6 percent for public entity; 6 percent for transportation and 11 percent for energy.

MarketScout said its barometer findings are supported by surveys conducted by The National Alliance for Insurance Education and Research, which were conducted during CIC and CRM institutes held in February.

MarketScout electronic exchange underwrites and distributes hundreds of product lines to its 58,000-member agency network across the United States.

The MarketScout exchange platform is located at http://www.marketscout.com.

Special Reports /

MarketScout Finds P-C February Rates Down 10%

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