According to results calculated by MarketScout, the Dallas-based insurance exchange, the soft market cycle is over. Richard Kerr, CEO of MarketScout, commented, "After six years and eight months the soft market cycle has finally broken. November 2011 is the first composite rate increase since the soft market began in February 2005."
Jumbo accounts, those over $1 million, are the only segment of the market measuring a rate decrease. These accounts were down 1 percent in November 2011. All other classifications, by either coverage, industry group or account size, measured flat or up as compared to one year ago at this same time.
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.