Richard Kerr, CEO of MarketScout said, "Property rates are continuing to firm. In July 2011, the composite rate for all property placed in the U.S. adjusted from minus 2 percent to flat. This includes new and renewal business on both cat and non-cat exposed property. This notable movement could be temporary due to the psychological impact of Hurricane Irene and the fact we are right in the midst of hurricane season."
Other coverage adjustments included EPLI, which increased 1 percent, and crime, which adjusted back down to flat.
By account size, small account buyers (below $25,000) experienced rate increases of 2 percent. Medium, large and jumbo accounts continued to experience rate decreases but medium accounts were down only 1 percent.
According to Kerr, "The larger the account, the more aggressive the underwriting community. Big prestige name accounts have always enjoyed preferred pricing. Brokers, agents and underwriters continue to be aggressive in their efforts to place marquee names on their client list."
The National Alliance for Insurance Education and Research conducted pricing surveys used in MarketScout's analysis of market conditions. These surveys help to further corroborate MarketScout's actual findings, mathematically driven by new and renewal placements across the United States.