Average property/casualty rate increases moderated significantly during 2003 but still remained in excess of 10% at year's end, according to the "Market Barometer" of Internet insurance portal Market-scout.com.

However, rate increases should continue to slow in 2004, said Richard Kerr, chief executive officer of the Dallas-based company, which claims that 50,000 agents use its Internet site for placements or for information.

In January 2003, the average year-over-year rate increase on business placed through Market-scout.com was 27%, which was close to the average of around 30% reported throughout 2002. But in the spring of last year, the hikes decreased to the upper teens, and by the end of 2003, the average rate increases were hovering around 10%.

But the figures represent averages for all property/casualty business placed through Marketscout.com, and there remain great variations among different lines, Mr. Kerr said. Medical malpractice rates, for example, continue to see significant increases, whereas property rates have begun declining for some accounts, he said.

Barring significant losses or insurer insolvencies, rate increases should continue to moderate in 2004, Mr. Kerr said.

"The trend should continue downward, and we expect increases to be in the 8%, 9%, 10% range for the next three months," he said.

Increased competition among insurers and lower reinsurance rate increases are driving the overall slowing in rate increases, Mr. Kerr said.