Overall commercial insurance price cuts moderated a bit in January--particularly for directors and officers and other professional liability lines in reaction to the subprime crisis, according to the monthly "Market Barometer."

Prices overall fell by an average of 15 percent last month, compared to December's 16 percent drop, reported MarketScout, a Dallas-based online insurance exchange.

"Largely as a result of D&O prices related to the subprime lending crises, the composite rate reductions for property and casualty insurance moderated slightly in January," said Richard Kerr, chief executive officer of MarketScout. He noted that D&O rates adjusted 3 percent to an average cut of 14 percent, compared to a 17 percent drop in December.

In addition, three other lines saw rate hikes moderate by one percentage point--inland marine (down 13 percent, compared to 14 percent in December), general liability (down 17 percent) and workers' compensation (down 8 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 said.

As in December, umbrella/excess led the declines at 18 percent, with commercial property and general liability close behind at 17 percent. Workers' comp showed the smallest average decline, at 8 percent.

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