Insurance premium prices moderated a bit in January, with a slight increase in directors and officers coverage and other professional liability lines in reaction to the subprime crisis, according to a report from an online insurance exchange.

Dallas-based MarketScout's monthly market barometer indicated prices moderated slightly for the month of January, dropping 15 percent overall compared to December's 16 percent drop.

Directors and officers "and all lines of professional liability actually experienced moderated reductions in January 2008 as compared to December 2007," said Richard Kerr, founder and chief executive officer of MarketScout.

"D&O rates adjusted 3 percent to a reduction of minus-14 percent as compared to minus-17 percent in December. Inland marine, general liability and workers' compensation premiums increased 1 percent. However, do not mistake this as a trend toward a hardening market. This is simply a normal adjustment during the course of the current soft market," Mr. Kerr continued.

As in December, umbrella/excess led the declines at 18 percent. Commercial property and general liability were close behind with a 17 percent decrease. The least soft line was surety and workers' comp, down just 8 percent.

By account size, small, large and jumbo accounts all saw decreases averaging 15 percent, a change of 1 percent from being down 16 percent in December for both large and jumbo accounts. Medium-size accounts were down 16 percent, equaling December's decrease.

Examining the results by industry class, manufacturing, contracting and energy saw the sharpest decrease at 16 percent, while service, habitational were down 15 percent. Rounding out the categories, transportation was down 14 percent and public entity was down 13 percent.

Special Reports /

Pricing Shows Moderation, But No Directional Change

Related Stories

Recommended For You