A composite rate index for property-casualty insurance showed that premiums on average fell 10 percent in February–a month in which there were no rate increases in any line of coverage.
“Barring a catastrophic wind season or other natural catastrophe, 2007 will be a tough year [for insurers], with rate decreases continuing throughout the year,” said Richard Kerr, chairman and chief executive officer of MarketScout, a Dallas-based online insurance exchange which produces the monthly “Market Barometer.”
“As is true with the stock market, the insurance market will correct itself at some point,” he added. “It's coming, just not anytime soon.”
By coverage class, February rates fell for general liability by 11 percent, workers' compensation by 10 percent, commercial property by 9 percent, and business interruption by 8 percent.
According to MarketScout, rates fell 7 percent for small accounts, 9 percent for medium-sized buyers, and 11 percent for large firms. By industry class, rates dropped 11 percent for manufacturing and energy.
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