MarketScout: Positioning For A Turn

After six years, the U.S. property/casualty market is positioning for a turn, according to online insurance exchange MarketScout.

MarketScout’s prognosis came as the composite rate for U.S. based property and casualty accounts moderated  for three  consecutive months. May 2011 rates were down 4 percent, June rates were down 3 percent and July is down 2 percent.

The last time the composite rate moderated for three consecutive months was in October 2005.

MarketScout noted that after almost six years, a pattern of consistent moderation in insurance pricing has occurred:

The trend towards rate moderation and in some categories, rate increases, further supports the position the market has bottomed out and is finally beginning a slow correction.†

Workers’ compensation rates continued to lead U.S. insurers out of the soft market with rate increases of 2 percent in July.

While property rates moderated to minus 2 percent for all classes of property combined, catastrophe exposed property rates are up 3 to 4 percent.

Richard Kerr, CEO of MarketScout, commented:

Because of losses already sustained by property reinsurers, the impact of the 2011 hurricane season could play huge in property rates for the next 12 months.†

Check out I.I.I. facts and stats on the property/casualty insurance cycle.

 

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