The composite rate for October was plus 4 percent ascompared to plus 5 percent in September. Several significantadjustments were recorded in October.

Small accounts and commercial property rates decreased from plus6 percent to plus 4 percent.. Business owners' policies (BOP) ratesdecreased from plus 5 percent to plus 3 percent. The largestdownward adjustment was in general liability coverage, which wasdown from plus 6 percent to plus 3 percent.

The market adjustments drew these comments from MarketScout'sCEO, Richard Kerr, “The upward trajectory of rates certainly lostsome steam in October. The general liability results aresignificant because this coverage is offered by a large percentageof both the admitted and non-admitted marketplace. We will watchclosely to see if more aggressive pricing creeps into other linesof coverage through the end of the year.”

Five coverages measured rate reductions: property, BOP, generalliability, D&O and EPLI. Commercial auto was the only coveragewith a rate increase at plus 6 percent as compared to plus 5percent the month before.

By industry class, contracting and habitational rates were lowerthan the preceding month.

Rates for accounts measured by size all remained the same asposted for the prior month with one notable exception. Smallaccounts ($0 to $25,000 premium) moderated from plus 6 percent toplus 4 percent.

The National Alliance for Insurance Education and Researchconducted pricing surveys used in MarketScout's analysis of marketconditions. These surveys help to further corroborate MarketScout'sactual findings, mathematically driven by new and renewalplacements across the United States.

PERSONAL LINES

As the 2013 hurricane season comes to an end, US personal linesinsurers are beginning to relax pricing. Homes under $1,000,000 andautomobile exposures were assessed lower rate increases in Octoberas the overall rate for October was plus 3 percent compared to plus4 percent in September.

Kerr says, “Homeowners and auto coverages on traditionalaccounts are enjoying premium reductions largely due to littlecatastrophe activity, but the high value personal lines marketactually assessed a month on month rate increase on their insureds.We expect the difference in pricing among traditional vs. highvalue accounts is due to the fact that high-net-worth insurersprovide significantly broader coverages, which ultimately result inmore claims. Many of these type of claims would not be covered bytraditional markets. Thus, the need for a little higher rate.”