Soft market persists |
|
Just ahead of midyear reinsurance treaty renewals, MarketScout's June 2010 composite Property and Casualty rate index measured down three percent 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 four percent. 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 1% |
Crime |
Up 1% |
Surety |
Down 1% |
Click image to enlarge
By Account Size |
||
Small Accounts |
Down 3% |
|
Up to $25,000 |
||
Medium Accounts |
Down 2% |
|
$25,001 - $250,000 |
||
Large Accounts |
Down 4% |
|
$250,000 - $1,000,000 |
||
Jumbo Accounts |
Down 4% |
|
Over $1,000,000 |
||
Click image to enlarge
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% |
|
Click image to enlarge
MarketScout
The barometer is compiled by MarketScout, a Dallas, Texas based electronic
insurance exchange which underwrites and distributes hundreds of product lines
to its 35,000-member agency network across the United States. Over 50 "A" Rated
carriers participate in the MarketScout exchange platform at
http://www.marketscout.com.
For more information, please contact:
Vilma Scott
vscott@marketscout.com
972-934-4224
The composite market conditions from 2001 to 2010 are set forth below.
