Posted on 06 Apr 2010
According to MarketScout, the composite rate for property and casualty coverages in the United States was down four percent for March 2010. The composite rates for February 2009 and 2010 were down eight percent and five percent respectively.
Richard Kerr, CEO of MarketScout commented, "Including data from across the United Sates, the rate for workers' compensation was down two percent in March as compared to down five percent in February. This is a significant month-on-month movement. If workers' compensation premiums continue to moderate over the next several months, it will be a clear sign that comp insurers are beginning to increase premiums. In April, the NCCI will publish new data outlining insurers' results for 2009. This data may give us additional indications of what we can expect for comp pricing for the rest of 2010. We will be watching carefully."
Directors & officers liability and surety rates were flat with both coverages showing a zero base level, meaning policies were renewed as expiring with no rate increases or decreases. Jumbo and large accounts continue to enjoy the greatest rate reductions. Small to medium accounts are receiving only moderate rate reductions. Rates moderated for energy, manufacturing and public entities. All other industry classes maintained the same rate position as in February.
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, which are mathematically driven by actual new and renewal placements across the United States.