The soft property/casualty insurance market is showing signs of hitting bottom, MarketScout reported Thursday.
The Dallas-based electronic insurance exchange said property/casualty rates dropped an average of 9% in October, compared with the same month a year earlier. The amount of decrease by line ranged from 12% for business owners package coverage to 5% for surety.
"For 42 consecutive months, from July 2001 to February 2005, the composite P&C rate increased every month," MarketScout Chief Executive Officer Richard Kerr said in a statement announcing the October survey results.
"Beginning in March 2005, rates started to drop and the current soft market began. For the last several months, rate decreases have continued; however, the decreases are moderating. The financial markets have experienced a meltdown, several major insurers are in serious trouble, underwriting results are slipping, and investment income is anemic at best. As a result, the soft market is winding down," he said.
Tell us what you think. Log in below to weigh in on this story.
Copyright © 2010 Crain Communications, Inc.
