U.S. property-casualty insurance rates are expected to keepfalling through the rest of 2008, but not at the same pace as in2007, according to MarketScout's monthly survey.
|The Dallas-based online insurance exchange reported that ratesfor May on average were down 11 percent, compared to a 13 percentreduction for the same period last year, and 12 percent this pastApril.
|“In the second half of 2007, rates declined an average of 14percent,” noted Richard Kerr, founder and chief executive officerof MarketScout. “We don't expect similar rate decreases in 2008.Rates will be down, but certainly not at the same pace as2007.”
|By coverage class, commercial property and general liability sawthe largest decreases in May, at 14 percent each. Professionalliability and directors and officers liability were at the low end,dropping 6 percent each.
|The manufacturing and service industries saw 12 percent cuts,while energy saw a 9 percent decrease. Contracting, habitationalrisks and transportation all saw 11 percent decreases, while publicentity coverage rates decreased by 10 percent.
|The size of the accounts mattered little with respect to howmuch the rate dropped. The Market Barometer survey reported thatjumbo and small accounts dropped 11 percent, while large- andmedium-sized accounts dropped 12 percent.
|MarketScout said its Market Barometer uses internally gathereddata plus in-person surveys. The findings are further supported bysurveys conducted by the National Alliance for Insurance Educationand Research. For more details, go to www.MarketScout.com.
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