Property-casualty rates continued spiraling downward for the third straight month, with a decline on average of 12 percent in March–two points more than in February, and three points beyond January's average drop–according to an online insurance wholesale exchange.
Indeed, no line of business showed any sign of upward pricing momentum last month, according to the latest “Market Barometer” from Dallas-based MarketScout.
Richard Kerr, chief executive officer of MarketScout, cited a number of “drivers” behind the market's softening:
o Strong profits reported by major insurers.
o More admitted carriers writing business previously placed only in the nonadmitted market.
o An influx of new capacity via startup insurers.
o Florida legislation that will result in billions of dollars in new property insurance capacity.
o The stock market remains strong.
o No major catastrophe losses in almost 18 months.
Of 13 coverage classes of business MarketScout broke down, general liability rates declined the most at 13 percent, closely followed by umbrella/excess and workers' compensation at 12 percent. Surety was down the least at 3 percent, with crime and fiduciary down 4 percent.
All account sizes reported downward trends, with small accounts off 9 percent, medium accounts down 10 percent, large accounts falling 12 percent, and jumbo accounts down 13 percent.
By industry class, manufacturing was down the most at 13 percent, while transportation saw the smallest decline at 8 percent.
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