Soft Market Continues At -5% for February

According to electronic insurance exchange MarketScout, the composite rate for U.S. property and casualty coverages in February 2011 registered minus 5 percent, which marks the fourth consecutive month where the composite rate measured minus 5 percent.

Source: Source: MarketScout | Published on March 7, 2011

Richard Kerr, CEO of MarketScout noted, "It seems the market is stuck at minus 5 percent on a composite basis. The rates by industry, coverage or account size change a bit each month but generally all categories are staying in the same range of premium reductions."

General Liability remained the most aggressively priced coverage at minus 6 percent, down from minus 5 percent last month. Manufacturing, service and contractor business increased slightly in premium from minus 5 percent to minus 4 percent. Energy accounts were priced more competitively in February at minus 5 percent versus minus 4 percent the month prior. One particular insurer was primarily responsible for driving the softer market in energy casualty accounts.

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 new and renewal placements across the United States.