The soft market may be seeking some moderation in pricing as rate declines were one percentage point lower than the previous four months, according to MarketScout's monthly market barometer.
The Dallas-based online insurance exchange reported average property-casualty rates decreased 8 percent over the month of February, one percentage point lower than the previous four months' 9 percent decrease.
It is the first change in the barometer since September when price decreases were at 10 percent, according to data gathered from its exchange, which MarketScout says includes over 50 "A" rated carriers.
According to the firm four major carriers are leading the way in putting the brakes on and resisting downward pressure.
MarketScout said the rate of decrease is down significantly from the same time last year when rates stood at minus-14 percent.
"A slow moderation in rate decreases continues as insurers evaluate their 2008 results and the impact of a slowing economy in 2009," said Richard Kerr, founder and chief executive officer of MarketScout. "Rate increases are merited based upon 2008 underwriting results and the reduction in premium income due to lower exposures such as payrolls and gross receipts."
He added that a few insurers are beginning to take a harder line on pricing.
"Four large insurance companies are drawing a line in the sand and demanding rate stabilization," said Mr. Kerr. "If it sticks, we will see a further flattening of reductions very soon."
On a month-to-month comparison, decreases for the lines commercial property, professional liability and crime slowed the most, dropping by two percentage points. Commercial property stood at minus-7 percent, while professional liability was down 5 percent and crime down 6 percent.
General liability and workers' compensation were unchanged at minus-9 percent and minus-7 percent, respectively.
All other lines were off one percentage point from the previous month.
By account size, on a month-to-month basis, only small accounts (up to $25,000 in premium) was unchanged, down 8 percent. Medium accounts went from down 9 percent in January to 8 percent in February. Both large accounts ($250,000-$1 million) and jumbo accounts (over $1 million) were off one percentage point from January to down 9 percent.
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