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Member, Beacon International Group, Ltd.
U.S. commercial property/casualty insurance rates declined 5% in February compared with a year earlier, MarketScout said Monday.
Over the past six months, P/C rates have fallen 4% to 5% each month, which represents a “consistent pattern” of pricing in most coverage classes, Richard Kerr, CEO of the Dallas-based electronic insurance exchange, said in a statement.
Mr. Kerr added that coastal property rates in select geographic areas are firming.
“While property rates were down 5% on a national basis, rates for wind capacity in the Gulf Coast, Florida and East Coast up to and including North Carolina are moderating or increasing,” Mr. Kerr said in the statement.
“Rumors persist that there will be two new entrants in the coastal property market before July,” Mr. Kerr said. “However, this new capacity will not result in rate reductions because these insurers are entering the market at a time where they hope to catch rates on the upswing. It’s a pretty good bet coastal property rates are going to increase soon.”
Insurers of large accounts of up to $1 million in premiums saw rate declines that ranged from 5% in January to 7% in February, which MarketScout attributed to an abundance of insurers targeting large accounts as well as a reduction in exposures.