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Member, Beacon International Group, Ltd.
U.S. commercial property/casualty rates dropped an average of 4% in March from 5% the previous four months, electronic insurance exchange MarketScout reported.
According to Dallas-based MarketScout, several lines of coverage tracked by the firm—including workers compensation, property, business interruption, small commercial, general liability and automotive—“adjusted in March” and are “showing a moderation of rate cuts.”
“We have finally broken out of the doldrums. Rates are moving,” said Richard Kerr, CEO of MarketScout, in a Tuesday statement. “It looks like the soft market from 2005 to 2011 will end with workers compensation and catastrophe exposed property risks leading the way out.”
Workers comp rates are increasing in some states and, due to speculation since the March 11 earthquake and tsunami in Sendai, Japan, catastrophe exposed risks are seeing increases of 2% to 5%, MarketScout said.
Insurers of large accounts of up to $1 million in premiums continued with average rate reductions of 5% in March, according to the statement.
Commercial property/casualty insurance rates dropped an average of 5% in December 2010 compared with a year earlier, MarketScout said.