Rate Consistency Ahead For Rest of Year
By Mark E. Ruquet
NU Online News Service, Dec. 6, 2:16 p.m. EST?Rate increases for property-casualty insurance should remain consistently low at least through the remainder of this year, according to the chief executive of an online insurance exchange.[@@]
Richard Kerr, chairman and chief executive officer of Dallas-based MarketScout, said there should be no rate surprises through 2004.
"We expect the market to remain constant through the end of the year," said Mr. Kerr. "The majority of insurance companies secure final terms for their own reinsurance protection in late December; therefore, the impact of those terms will not be reflected until January 2005."
In its monthly barometer survey of insurance rates, MarketScout said overall property-casualty composite market rate increases remained, on average, at two percent, the same as last month, placing it in the soft-market range of its barometer.
The survey noted that inland marine, excess liability, auto, employer's professional liability insurance, fiduciary and surety saw no increases over the past month.
Property, general liability, workers' compensation and professional liability saw increases of one-to-10 percent.
Directors and officers coverage experienced a 15 percent decrease, and large casualty saw a 12 percent decrease.
MarketScout said any placement over $500,000 in premium, except for coastal property or offshore energy, experienced a 9 percent decrease.
In addition to its own internal data, MarketScout is including data of insurance agents and buyers collected by Austin, Texas-based The National Alliance.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.