Property/casualty insurance rates fell 8% on average in February compared with February 2007, MarketScout reported Friday.
Between February 2007 and February 2008, there was a drop of 14%, according to the Dallas-based electronic insurance exchange.
General liability and business owners' policies experienced the greatest rate reductions at 9%. "Other lines of coverage experienced rate reductions of 4% to 7%, but the composite reduction was 8% because of the large volume" of general liability and business owners policies, MarketScout said.
"A slow moderation in rate decreases continues as insurers evaluate their 2008 results and the impact of a slowing economy in 2009," said MarketScout Chief Executive Officer Richard Kerr in a statement analyzing the results. "Rate increases are merited based on 2008 underwriting results and the reduction in premium income due to lower exposures such as payrolls and gross receipts."
Some large insurers are "drawing a line in the sand and demanding rate stabilization," he said. "If it sticks, we will see a further flattening of reductions very soon."
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