Even though the soft market may be ending, don't expect to see prices rise rapidly and across the board overnight, the chief executive of an online insurance exchange says.
Richard Kerr, CEO of Dallas-based MarketScout–which conducts the monthly “Market Barometer” survey–said the decline in insurance prices will be coming to a halt because rates have become inadequate to cover losses and expenses.
“At the end of every year we calculate the rate adequacy of the property and casualty industry,” said Mr. Kerr. “According to our calculations, the property and casualty rate index fell below 'rate adequacy' in the fourth quarter of 2008. Therefore, we believe this signifies the beginning of the end of the current soft market.”
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