Premium rates for property-casualty insurance slipped another percentage point over last month, according to the electronic insurance exchange MarketScout, in its monthly report.
The Dallas-based service said composite rates decreased 3 percent versus a 2 percent decrease last month. Last year, in June 2004, rates increased by 7 percent, and in June 2003 rates were increasing at an aggressive 18 percent.
"The slow, methodical market decline is continuing with property renewals leading the way," said Richard Kerr, chairman and chief executive officer of MarketScout, in a statement. "However, if TRIA is in fact altered considerably or eliminated, both property and workers' compensation rates would be impacted. The result would most certainly be a cessation of rate reductions in these lines of coverage."
Mr. Kerr also pointed out: "Most of the trends set in early 2005 are continuing; the larger the account, the greater the premium reduction. However, a trend that did reverse itself this month was the price decreases in corporate directors and officers coverage. While this line of coverage had been leading the decreases in prior months, it was flat in June, perhaps signaling a reversal of the downward pricing trend for this line of coverage.
"Underwriters are becoming concerned about how interest rates, the stock market, oil prices and other business dynamics will impact their insureds," he said.
The barometer is compiled by MarketScout. Additional information is available at www.marketscout.com.
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