The CEO of MarketScout says Berkshire Hathaway's hiring of four seasoned executives away from AmericanInternational Group could disrupt commercial market rate increasesshould the company decide to enter the primary marketplace toexpand its market share.

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In this month's release of the online insurance exchanges'market barometer, CEO Richard Kerr says Berkshire could affect thesteady rate of increase the P&C industry has enjoyed if itplans “to enter the primary property and casualty market in ameaningful way.”

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He cautions that his views are speculative, but he notes thatrumors point to Berkshire possibly launching “a new multi-lineadmitted underwriting company.”

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But Kerr also says that historically, Berkshire has proven to bea very sound underwriter and “it is doubtful they will price theirproducts inappropriately.”

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Both Berkshire and AIG have very talented stable of people, andwhatever direction the companies choose, “the end result will bepositive for insurance buyers, brokers and agents,” says Kerr

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For Berkshire's part, in reporting its 2013 first quarterresults, the insurer notes that in at least two of its insurancecompanies, it has the capacity to increase underwriting, but onlyif market conditions improve.

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Turning to the commercial rate barometer, MarketScout says thatfor the month of April, overall P&C rates rose 5 percent, thesame as the previous month. Commercial property and workers'compensation were up the most at 6 percent. By premium accountsize, jumbo accounts—over $1 million in premium—experienced thelargest adjustment, going from increases of 5 percent in March to 3percent in April.

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All business classes showed upward momentum with EmploymentPractices Liability Insurance and Surety having the lowest increaseat 2 percent.

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