Posted on 07 Dec 2010
In November, the composite rate for property and casualty placements in the United States was minus five percent. The three preceding months reflected a composite decline of minus four percent.
According to Richard Kerr, Founder and CEO of MarketScout, "Our studies reflect increased competition for accounts ranging in premium size from $250,000 to $1 million. Insurers who traditionally focused on small guaranteed cost accounts are moving into the middle and larger market sectors to get a shot at larger accounts which many insurance executives feel generate a higher profit margin for both insurers and intermediaries. Insurers collect more premium and agents normally get full commissions. Further, the agents benefit by direct communication with officers of the insured and absence of fee negotiations. Mega brokers continue to work on implementing successful guaranteed cost market strategies, resulting in lower premiums for insurers and possibly lower commissions for agents in the future."
By coverage, general liability was down the most at minus six percent followed by property at minus five percent. By account size, accounts from $250,000 to $1 million were priced most aggressively at minus six percent. When measured by industry class, manufacturing and contracting were both down five percent.