Market Adjusts

For the first time in a long while a survey of the condition of the U.S. commercial property/casualty market appears to indicate a slight easing of the soft market. Online insurance exchange MarketScout reports that the average property/casualty rate decrease was 15 percent in January 2008, compared with a year ago. MarketScout attributes the moderation largely to D&O prices related to the subprime crisis. D&O rates adjusted 3 percent to post a rate drop of 14 percent in January, compared to a decrease of 17 percent the prior year. Nevertheless, MarketScout warns not to mistake this as a trend towards a hardening market, referring to it simply as “a normal adjustment during the course of the current soft market”. By line of coverage, umbrella/excess led the pack with a rate decline of 18 percent in January 2008. Commercial property and general liability experienced the second largest drop in rates of 17 percent. Surety and workers’ compensation saw the smallest rate decline of 8 percent. Check out the I.I.I.’s latest industry outlook.  

Leave a Reply

Your email address will not be published. Required fields are marked *