MarketScout CEO Richard Kerr is a shameless tease! In commentingon his firm's “Market Barometer” survey, he asserted “there arestill three large, admitted, publicly-traded insurers clamoring forpremium, seemingly at any rate and continuing to prolong the softmarket.”

However, he refuses to identify “the terrible trio” keepingprices soft despite the fact that “every sensible economicindicator tells us rates should be increasing…”

“Even the E&S market is refusing to chase rates down,sitting on the sideline as the terrible trio slashes each other tobits,” he said. “Our guess is prudent insurers are waiting to pickup the fallout when the terrible trio have their day ofreckoning.”

He warned that “in our new financial world, the CEOs of theterrible trio are ultimately going to have some explaining to do,”adding that “…once these irresponsible underwriters are reined in,we should be on the way to rate increases. Until that occurs, thesoft market will continue.”

Just who might “rein in” these price-cutting mavericks? Willpeer pressure do the trick? I can't imagine an anonymous thrashinghaving any impact.

However, these are potentially dangerous words. While theremight not be any legal liability, there are reputational risks, asonce again the industry is perceived as a cartel prone toprice-fixing.

I invited readers to speculate about who Mr. Kerr might betargeting, and a bunch of potential “suspects” were cited. Butwhile a few ventured their guesses, more took the opportunity tolambast Mr. Kerr for interfering with the free market.

On my June 8 blog, J. Robert Hunter, insurance director for theConsumer Federation of America, asked: “Would the insuranceexecutives be able to signal their desired market turn informationso openly if not for the antitrust exemption they enjoy from theMcCarran Ferguson Act?”

He complained that “every cycle–usually a year or two before theend of the soft market–we see the CEOs making the rounds atmeetings their so-called 'competitors' attend, telling their rivalsit is time to jack up reserves and hike prices and pointing fingersat those who resist.”

Mr. Hunter said “it is not unlike a bird's ritualistic dance ofinvitation to potential mates in the spring–in this case, aperiodic invitation from some of the key birds in the industry fortheir compatriots to join them in welcoming the nextnon-competitive (i.e., highly-profitable) phase of the cycle.”

Another blog respondent, “Insured Consumer,” wrote to ask if Mr.Kerr is “publicly complaining that market competition is working?Is he saying that if only this 'terrible trio' would 'play ball,'then we could all raise our rates?”

Other readers complained NU shouldn't have publishedanything Mr. Kerr said unless he named the trio. Sorry, folks, butthis is news, one way or the other.

One reader wondered whether we were protecting the carriers'identity because they are advertisers. They very well might be, butI swear Mr. Kerr has not whispered their names into our ears andmade us take a blood oath to leave them unidentified. And I assureyou we would never withhold a legitimate news story because itinvolves an advertiser. It's not how we do business.

We are just as curious as you as to who the three might be, butI have a feeling Mr. Kerr will never tell. In fact, with all theheat he's taking, he probably wishes he had never brought this upin the first place.