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 Soft market to continue, MarketScout reports 

 
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Property-casualty insurance rates dropped an average 5 percent in November compared with those of a year earlier, MarketScout reported.

The Dallas-based electronic insurance exchange reported that all lines of business experienced rate decreases except D&O liability. General liability coverage posted the largest drop at 6 percent in November compared with the previous year.

There are signs the soft market may continue, courtesy of insurance brokerages, MarketScout reported.

“As we continue to contemplate when the market will turn, we must consider outside distribution changes that could further prolong the soft market,” MarketScout said in a statement accompanying the report.

“Megabrokers are taking interest in small- to middle-market business again. It seems this happens about every 10 years or so, but this time it may be more serious,” MarketScout said. “The big boys are not trying to grow middle-market business internally as in years past. This time they plan to buy instead of build. If all of the megabrokers start acquiring independent retail agencies, they could easily buy 30 percent to 40 percent of the market in 3 or 4 years.”

 



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