The chief executive for MarketScout said three unnamed insurers are keeping rates low at a time when business realities call for market hardening.
"Every sensible economic indicator tells us rates should be increasing, yet there are still three large, admitted, publicly traded insurers clamoring for premium, seemingly at any rate and continuing to prolong the soft market," said Richard Kerr, chairman and CEO of Dallas-based MarketScout. Once these insurers cease cutting rates, the way is cleared for increases, he said.
Emphasizing Kerr’s observations, MarketScout reported the composite premium rate for May stood at minus 6 percent, compared to minus 7 percent in April. The May 2009 figure is a notable improvement from last year where the composite premium rate came in at minus 11 percent.
Most coverage classes were down by 4 or 5 percent. The exceptions were business owners policy, general liability and umbrella excess (minus 6 percent); workers’ compensation at minus 7 percent; and fiduciary at minus 3 percent.
Examining account size, only jumbo-size accounts of more than $1 million in premium remained unchanged on a month-to-month basis at minus 8 percent.
Small, medium and large accounts changed one percentage point on a month-to-month basis. Small and medium size accounts went from minus 7 percent in April to minus 6 percent, and large accounts went to minus 7 percent for May from minus 8 percent in April.