Posted on 09 Mar 2009
According to MarketScout's February 2009 results, the composite rate for property and casualty insurance was minus 8% compared to minus 14% in February 2008.
MarketScout Founder and CEO Richard Kerr, said of the results, “A slow moderation in rate decreases continues as insurers evaluate their 2008 results and the impact of a slowing economy in 2009. Rate increases are merited based upon 2008 underwriting results and the reduction in premium income due to lower exposures such as payrolls and gross receipts. Four large insurance companies are drawing a line in the sand and demanding rate stabilization. If it sticks, we will see a further flattening of reductions very soon.”
General Liability (GL) and Business Owners policies (BOP) reflected the highest rate reductions at 9%. Other lines of coverage experienced rate reductions of 4% to 7% but the composite reduction was 8% because of the large volume of GL and BOP business. By account size, premium reductions were at similar levels with the only notable feature being a slightly smaller reduction for accounts under $250,000 premium. Service and Manufacturing accounts enjoyed the greatest premium reductions (9%) while Transportation and Energy the least (5%).
For more detailed information, visit: http://www.marketscout.com/frontend/barometer2.asp