The rate of decline in U.S. property and casualty rates, which plummeted 12 percent last month, may begin to slow this year, but decreases will continue, according to an insurance exchange executive.
"We anticipate rate decreases to moderate for the remainder of 2008. However, a lessening rate decrease in 2008 does not mean the soft market is coming to an end," commented Richard Kerr, chairman and chief executive of MarketScout, in revealing the 12 percent average commercial insurance rate decline for March.
"The soft market began in February 2005, so after 36 months, rate reductions will naturally moderate. For instance, including the March 2008 reduction of 12 percent, rates are down almost 30 percent from March 2005 to March 2008," said Mr. Kerr in a statement.
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