The composite rate for all lines of U.S. property-casualty business is down 12 percent for April, MarketScout the electronic insurance exchange reported.

The 12 percent overall decline for April is the same as the reported decline for March, and two percentage points less than the 14 percent drop reported for February.

Richard Kerr, founder and chief executive officer of the Dallas-based concern said in a statement that admitted insurers "continue to carve market share from the surplus lines insurers by assuming risks which had been traditionally placed in the non-admitted market. Vanilla accounts are coveted by everyone so they also go to the admitted market, but at extremely competitive rates."

By coverage class, general liability insurance was reported as leading the declines at minus 15 percent. Small accounts declined by 14 percent versus 12 percent the month before, while jumbo accounts actually increased in price moving from a overall decline of 13 percent to a decline of 11 percent.

Service contractors, MarketScout said, are very competitively priced at minus 15 percent.

MarketScout's Barometer is created using data assimilated via its online insurance exchange and is supported by in person surveys of retail agents, company personnel, wholesale brokers, and managing general agents.

The declines in rates for April 2008 broken down by coverage class:

o Commercial property, 14 percent

o Business interruption, 11 percent

o Inland marine, 10 percent

o General liability, 15 percent

o Umbrella/excess, 12 percent

o Commercial auto, 9 percent

o Workers' compensation 8 percent

o Professional liability, 7 percent

o Directors and officers liability, 6 percent

o Employment practices liability, 12 percent

o Fiduciary, 7 percent

o Crime, 8 percent

o Surety, 7 percent

By account size, the declines were:

o Small accounts up to $25,000, 14 percent

o Medium accounts, $25,001 to $250,000, 12 percent

o Large accounts, $250,000 to $1 million, down 12 percent

o Jumbo accounts over $1 million, 11 percent.

By industry class, rate declines were:

o Manufacturing, 12 percent

o Contracting, 12 percent

o Service, 15 percent

o Habitational, 12 percent

o Public entity, 13 percent

o Transportation, 11 percent

o Energy, 11 percent

MarketScout's barometer findings are supported by surveys conducted by The National Alliance for Insurance Education and Research during CIC and CRM institutes held across the United States in April 2008.

MarketScout underwrites and distributes hundreds of product lines to a 60,000-member agency network across the United States.

Special Reports /

P-C Composite Rate Down 12% In April: MarketScout

Related Stories

Recommended For You