Moderating Rate Reductions

Energy industries, along with transportation and habitation industries, had the least premium reductions at minus two percent in May 2010, according to the latest market barometer from online insurance exchange MarketScout.

Just last month MarketScout CEO Richard Kerr warned that energy rates would increase, especially for offshore accounts in the wake of the explosion, fire and sinking of the Deepwater Horizon oil rig.

MarketScout’s latest analysis reveals that the premium and corresponding rates for all lines of commercial property and casualty business in the United States were down three percent in May 2010, compared to minus four percent in April and a six percent rate decrease a year ago.

Not since June 2005 has the average property/casualty rate decrease been as little as 3 percent.

Crime (flat), EPLI, fiduciary and surety (down 1 percent) were the coverage classes experiencing the smallest decreases in May, while general liability experienced the largest rate decrease at 5 percent.

Check out a new I.I.I. presentation on the Deepwater Horizon  event and I.I.I. information on the industry’s financial results and market conditions.

One thought on “Moderating Rate Reductions”

  1. Rate reductions in the insurance sector were more due to the economical crunch rather than the loss based or risk control reductions which is the normal reason why reductions are given. Its rope walking for the insurance sector!

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