NU Online News Service, April 6, 11:08 a.m. EDT
MarketScout, the electronic insurance exchange, said its composite rate for U.S. property and casualty insurance coverage was down 4 percent in March.
That compared with a composite rate for February 2009 which was down 8 percent and for February 2010, 5 percent.
Richard Kerr, chief executive officer of Dallas-based MarketScout, in a commentary issued with the results said the workers' compensation insurance line is the one to watch as rate declines there are lessening.
"Including data from across the United States, the rate for workers' compensation was down 2 percent in March as compared to down 5 percent in February," he pointed out.
"This is a significant month-on-month movement. If workers' compensation premiums continue to moderate over the next several months, it will be a clear sign that comp insurers are beginning to increase premiums," said Mr. Kerr.
He noted that in April, the National Council on Compensation Insurance will publish new data outlining insurers' results for 2009. "This data may give us additional indications of what we can expect for comp pricing for the rest of 2010. We will be watching carefully," Mr. Kerr said.
MarketScout found that directors and officers liability and surety rates were flat with both coverages showing a zero base level, which it said meant policies were renewed as expiring with no rate increases or decreases.
Jumbo and large accounts continue to see the greatest rate reductions, while small to medium accounts were receiving only moderate rate reductions.
Rates moderated for energy, manufacturing and public entities. All other industry classes maintained the same rate position as in February.
The National Alliance for Insurance Education and Research conducted pricing surveys used in MarketScout's analysis of market conditions.
MarketScout said these surveys help to further corroborate MarketScout's actual findings, which are mathematically driven by actual new and renewal placements across the United States.
Rate reductions by coverage class were: general liability, 5 percent; commercial property and business owners policy, 4 percent; business interruption inland marine, umbrella excess, commercial auto and professional liability, 3 percent; workers' compensation, 2 percent; employment practices liability insurance, fiduciary and crime, 1 percent. Directors and officers liability and surety were flat.
Rate reductions by account size were: jumbo accounts over $1 million, 6 percent; large accounts of $250,000 to $1 million, 5 percent; medium accounts of $25,001 to $250,000, 4 percent; and small accounts up to $25,000, 3 percent.
Rate reductions by industry class were: contracting and service, 5 percent; manufacturing, 4 percent; habitational, 3 percent; and public entity, transportation and energy were all 2 percent.
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