P&C Rate Decline Continues To Moderate

NU Online News Service, Oct. 6, 3:30 p.m. EDT

Property and casualty insurance rates continued to moderate through September with composite rates moving from minus 5 percent in August to minus 4 percent last month, according to electronic insurance exchange MarketScout.

The Dallas-based company released its monthly market barometer, indicating that overall P&C insurance rates have moderated substantially from last year, when the composite rate stood at negative 10 percent for September compared to this year's 4 percent.

"Rates will continue to moderate for the balance of 2009," said Richard Kerr, chief executive officer of MarketScout. "By early 2010, we anticipate most lines of coverage will be renewed as expiring or for a slight rate increase."

By business class, general liability showed the biggest change, going from negative 7 percent in August to negative 5 percent in September. Inland Marine also showed a two-point swing from negative 5 percent to negative 3 percent last month.

Workers' compensation was still the most competitive line at negative 6 percent, but showed a one-point swing from negative 7 percent in August.

Commercial property remained unchanged at negative 4 percent, as did directors and officers liability (flat), crime (negative 2 percent) and surety (down 3 percent).

Fiduciary was the only line to buck the moderation trend, going from negative 2 percent in August to negative 3 percent in September.

Three of the four account size segments remained unchanged on a month-to-month basis. Small accounts stood at negative 3 percent, medium accounts at negative 5 percent and large accounts at negative 6 percent.

Jumbo accounts experienced a one-point swing, going from negative 5 percent in August to negative 4 percent in September.