Property and casualty rate reductions are coming to an end and the soft market is drawing to a close, according to online insurance exchange MarketScout.
In its latest market analysis, MarketScout noted that the composite rate for U.S. based property and casualty insurance was flat at zero percent in September 2011.
Richard Kerr, chief executive officer of MarketScout said:
Brokers and insurers shouldnÃ¢â‚¬â„¢t pop the champagne just yet, but there is light at the end of the soft market tunnel. Financial metrics may not necessarily call for pricing adjustments in all areas, but after six-and-a-half years, the market may turn anyway.Ã¢â‚¬
WorkersÃ¢â‚¬â„¢ compensation and catastrophe-exposed property classes are leading the way towards higher rates.
MarketScout reported rate increases of 1 percent in commercial property and BOP coverages. WorkersÃ¢â‚¬â„¢ compensation rates were up 2 percent.
Professional liability, D&O, fiduciary and crime coverages were flat. Other lines of coverage had a composite rate decrease of 1 percent to 2 percent, still a moderation compared to prior months.