P&C Market Barometer Shows 9 Percent Rate Reductions In November
National Underwriter News
December 8, 2008
Commercial property and general liability lines led November rate reductions for the insurance sector, each averaging 11 percent, according to an electronic insurance exchange.
MarketScout, in its monthly Market Barometer, reported the average rate reduction for the 14 lines it tracks was 9 percent. Workers' compensation, directors and officers liability, and surety were at the low end of rate reductions, with each showing a 5 percent decrease.
Richard Kerr, founder and CEO of Dallas-based MarketScout, pointed out that large and jumbo accounts, defined as premium over $250,000, in general showed the largest rate reductions, both at an average of 10 percent, while small and medium accounts were reduced by 8 percent.
"Small-business owner's policies, which appeared to be on a continuous rate reduction cycle, reversed course and were down 9 percent in November as compared to down 12 percent in October," Mr. Kerr said.
Separated by industry class, rates for the manufacturing and service industries dropped the most, at 10 percent, while energy saw the smallest rate decrease, at an average of 5 percent.
MarketScout said its data is corroborated by working with The National Alliance for Insurance Education and Research to conduct in-person surveys during advanced learning sessions.
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