Dallas — The property/casualty rate index fell below “rate adequacy” in the fourth quarter of 2008, signifying the beginning of the end of the current soft market, according to Dallas-based electronic insurance exchange MarketScout.

"It may take as much as a year for rates to actually start increasing but the soft market trend has turned," says Richard Kerr, CEO of MarketScout.

For December 2008, the rates were as follows:

By coverage class:

Commercial Property Down 10%
Business Interruption Down 6%
BOP Down 9%
Inland Marine Down 7%
General Liability Down 10%
Umbrella/Excess Down 8%
Commercial Auto Down 10%
Workers’ Compensation Down 6%
Professional Liability Down 6%
D&O Liability Down 4%
EPLI Down 8%
Fiduciary Down 8%
Crime Down 7%
Surety Down 5%

By account size:

Small Accounts / Up to $25,000 Down 8%
Medium Accounts / $25,001 - $250,000 Down 9%
Large Accounts / $250,000 - $1,000,000 Down 9%
Jumbo Accounts / Over $1,000,000 Down 10%

By industry class:

Manufacturing Down 9%
Contracting Down 7%
Service Down 9%
Habitational Down 9%
Public Entity Down 8%
Transportation Down 6%
Energy Down 5% 

MarketScout corroborates its data by working with The National Alliance for Insurance Education and Research to conduct in-person surveys. These surveys are conducted every month during CIC, CRM and other advanced learning sessions where the participants are relaxed and have ample time to thoroughly complete the survey.

A summary of rates for each coverage and industry class as well as by account size is available for each month at www.marketscout.com.

Source: MarketScout

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