Soft Market Winding Down

The average property/casualty rate decrease hit single digits in October for the first time in more than 20 months according to online insurance exchange MarketScout. It put the average p/c rate decrease at 9 percent in October, compared to a decline of 15 percent a year ago. Not since January 2007 has the average p/c rate decrease been in the single digits. Richard Kerr, founder and CEO of MarketScout said the soft market is winding down as a result of several factors including the meltdown in the financial markets, slipping underwriting results and anemic investment income. BOP (down 12 percent), commercial property and general liability (each down 11 percent) experienced the largest rate decreases. The lines experiencing the smallest rate decreases were surety (down 5 percent), D&O liability, fiduciary, crime and workers’ compensation (down 6 percent).  

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