Commercial lines rate increases moderated in July and the markethas become “quiet” due to the time of year and lack of catastrophicevents, according to MarketScout's chief executive.

Dallas-based MarketScout notes that after four months ofyear-over-year 5 percent rate increases, July rate increases easedto 4 percent compared to the same period last year. MarketScoutsays commercial auto, workers' compensation, directors and officersand employment practices liability insurance rates all moderated by1 percent, while fiduciary rates were up slightly from plus-2percent to plus-3 percent.

MarketScout CEO Richard Kerr says, “The market is quiet.Many underwriters, insurers, and brokers are on holiday aftersecuring their July 1 renewals. Without any catastrophic events, itis natural to see the market drift downward. We will have a muchbetter feel for where things are headed once the results aretabulated for September and October.”

By account size for July, MarketScout says rate increases forJumbo (premium over $1 million), medium (premium $25,001 to$250,000) and small (up to $25,000) accounts remained unchanged at2 percent, 5 percent and 6 percent respectively. Increases forlarge accounts ($250,001 to $1,000,000 premium) moderated from 4percent to 3 percent.

By industry classification, every industry group except forpublic entity business moderated by 1 percent, says MarketScout.The contracting, service and transportation industries all sawincreases of 5 percent versus 6 percent in June, whilemanufacturing and habitational saw 4 percent increases in Julyversus 5 percent in the previous month. Rates for energy risks wereup by 3 percent, compared to 4 percent in June, and public entitywas unchanged at up by 2 percent.

MarketScout's report follows a Council of Insurance Agents andBrokers Q2 survey that also showed some moderation in rate increases. CIAB says itsquarterly survey of insurance rates shows while prices continue toclimb, the rate of increase fell a little more than a full point onaverage from the first quarter to 4.3 percent.