Property-casualty rates continue spiraling downward, showing adecline of 12 percent over the previous month, according to anonline insurance wholesale exchange.

In its latest Market Barometer, Dallas-based MarketScout said onaverage March rates were down 12 percent with no lines of businessshowing any sign of upward momentum.

In a statement Richard Kerr, chief executive officer ofMarketScout, said: “The softening of the market is due to sevendrivers:

o Major insurance companies are reporting strong profits.

o Many admitted carriers are now writing business which waspreviously written in the nonadmitted market.

o There is an influx of new capacity via startup insurancecompanies.

o Florida has passed legislation which will result in billionsof dollars of new property insurance capacity.

o The stock market remains strong.

o Corporate earnings are strong.

o There have been no major catastrophe losses in almost 18months.

As a result, property and casualty rates are down 12 percent forMarch 2007.”

Of 13 coverage classes of business MarketScout broke down,general liability rates declined the most at 13 percent, closelyfollowed by umbrella/excess and workers' compensation at 12percent. Surety was down the least at 3 percent, with crime andfiduciary standing at negative-4 percent. The remainder ranged fromnegative-8 percent to negative-11 percent.

All size accounts showed downward trends. Small accounts weredown 9 percent; medium accounts down 10 percent; large accountsdown 12 percent; and jumbo accounts down 13 percent.

By industry class, manufacturing was down the most at 13percent, while transportation saw the smallest decline at 8percent.

The numbers reflects a steady falloff since the beginning of theyear in rates, with February coming in at negative-10 percent andJanuary standing at negative-9 percent, the third year of decline,MarketScout said.