Market Remains Soft

A lengthy soft market coupled with the recession is creating a lot of pain for everyone: insurers, reinsurers, agents and brokers, according to Richard Kerr, CEO of online insurance exchange MarketScout.

His comments came as MarketScout’s latest analysis reveals the composite rate for U.S. property and casualty insurance was down four percent for September 2010, unchanged from a year ago.

By account size, rates were most competitive for accounts over $1 million in premium (down 5 percent), and by industry, service contractors are enjoying the largest rate decreases (minus 5 percent), according to MarketScout.

General liability was the most aggressively priced product with an average rate reduction of minus 5 percent, followed by commercial property and inland marine at minus four percent.

D&O liability, employment practices liability (EPL), fiduciary and crime were the coverage classes experiencing the smallest decreases (minus 1 percent).

Kerr added:

Everyone is fighting and scratching for market share. If rates don’t go up soon and the economy remains in the doldrums, the fighting will only get worse.†

In August, MarketScout predicted an overall  soft market for the balance of 2010, barring a major catastrophic event.

Check out I.I.I. information on the industry’s financial results and market conditions.

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