Property-casualty insurance premium rate reductions may be moderating, but declines continue for all lines of business, according to the monthly "Market Barometer" survey issued by MarketScout.

Overall p-c composite rates declined 10 percent in August, the Dallas-based online insurance exchange reported, down slightly from the overall 11 percent drop in June and July.

Workers' compensation rate cuts slowed the most, coming in at a reduction of 5 percent, compared to 7 percent in July. Rates for directors and officers liability were down 7 percent in August.

Businessowners policies for small accounts declined the most at 14 percent, as compared to an average 10 percent decline for all other types of small accounts--those under $25,000 in premium, Richard Kerr, chairman and chief executive officer of MarketScout, said in a statement.

"For now, BOP business appears to be experiencing the most aggressive rate-cutting of all lines of coverage," he said, suggesting the sector is "very competitive due to the large number of insurers in the space and the ease of access to SEMCI (single-entry, multiple-company interface) quoting engines."

He said "these online software programs are a powerful way for agents to quickly canvass the market. However, some believe it is a strong driver of price reductions."

Commercial property showed the next steepest average rate decline at 12 percent, followed by general liability, employment practices liability and umbrella/excess liability--all down 10 percent.

Special Reports /

Overall Rate Declines Moderate, But Persist For All Commercial Lines

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