Market Turn Led by Major Insurers

Online insurance exchange MarketScout said the average property/casualty rate decrease was 8 percent in February 2009, compared to a double-digit rate decrease of 14 percent a year ago. According to its analysis a slow moderation in rate decreases continues as insurers evaluate their 2008 results and the impact of a slowing economy in 2009. MarketScout founder and CEO Richard Kerr observed: “Four large insurance companies are drawing a line in the sand and demanding rate stabilization. If it sticks, we will see a further flattening of reductions very soon.† General liability and business owners policies (BOPs) experienced the largest rate decreases at 9 percent. The line experiencing the smallest rate decrease was D&O liability (down 4 percent). Large accounts ($250,000-$1 million premium) saw an average rate reduction of 9 percent while small accounts (up to $25,000 premium) were down 8 percent, according to MarketScout. Check out latest I.I.I. information on the industry’s financial outlook.  

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