MarketScout: Soft Market Over

After six years and eight months the soft market cycle is finally over, according to latest analysis from online insurance exchange MarketScout.

MarketScout reported that the composite rate for U.S. based property and casualty insurance was up 1 percent in November 2011.

Richard Kerr, CEO of MarketScout, said:

November 2011 is the first composite rate increase since the soft market began in February 2005.†

MarketScout noted that jumbo accounts (those over $1 million) are the only segment of the market measuring a rate decrease. These accounts were down 1 percent in November 2011.

All other classifications, by either coverage, industry group or account size, measured flat or up as compared to this time a year ago.

Commercial property, business owners policies (BOP) and workers’ compensation coverages led the way with rate increases of 2 percent in November. All other coverages were up 1 percent or flat compared to November last year.

PC360 has more on this story.

Meanwhile, a benchmarking survey from Marsh Inc. found that nearly half of all U.S. property insurance renewals in the fourth quarter to-date have experienced rate increases. Check out Business Insurance for the scoop.

Check out I.I.I. information on industry results and market conditions.

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