Property casualty rates and premiums fell 1% last month as the industry braces for a soft market in 2015.
The composite rate for property/casualty insurance rates and premiums was flat in March after experiencing slowing growth in the last quarter of 2014, a new report from MarketScout finds.The rate compares to a 1% increase in February.
Noteworthy rate changes from February to March include flat trending in general liability and excess/umbrella liability. Commercial auto, professional liability, and EPLI were also down 1 percent in February as compared to March.
No coverages reflected a rate decrease.
By account size, small accounts (up to $25,000 premium) adjusted downward from up 2% in February to up 1% in March. Meanwhile, large accounts ($250,000 to $1,000,000 premium) were flat after increasing 1% in February. All other accounts remained unchanged.
The results reflect the anticipation in the industry for a soft market period, MarketScout CEO Richard Kerr noted.
“March is an important month. There is a considerable volume of US business placed with both the US and international insurers. While a small change from February, the downward adjustment in rates may be an indicator of what is to come for the next six months,” noted Richard Kerr, CEO of MarketScout.
The following is a summary of March 2015 property/casualty rates:
