Just ahead of midyear reinsurance treaty renewals, the June 2010 composite Property/Casualty rate index, released by Dallas-based MarketScout, an insurance exchange comprising primarily independent retail agents, measured down 3% as compared to the same time one year ago.
Richard Kerr, Founder and CEO of MarketScout, said "The two largest market segments, commercial property and general liability, reflected market decreases of 4%. Other lines of coverages either remained at the same level as in May or moved one percentage point up or down. Crime coverages actually increased one percent, perhaps because of increased losses which may have developed throughout the economic downturn."
“Halfway through 2010, it appears the U.S. property and casualty market is stuck in a moderating but continuing soft market.” Kerr continued, “A good measurement of market position for the balance of this year will be the composite rate for July, as it is the second largest renewal month each year.” 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. A summary of June 2010 rates by coverage, industry class and account size is set forth below.
By Coverage Class: Commercial Property: Down 4% Business Interruption: Down 3% BOP: Down 2% Inland Marine: Down 3% General Liability: Down 4% Umbrella/Excess: Down 2% Commercial Auto: Down 2% Workers’ Compensation: Down 2% Professional Liability: Down 2% D&O Liability: Down 1% EPLI: Down 1% Fiduciary: Down 2% Crime: Up 1% Surety: Down 1% By Industry Class: Manufacturing Down 4% Contracting Down 3% Service Down 3% Habitational Down 2% Public Entity Down 3% Transportation Down 2% Energy Down 1%
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