Insurance News

Property/casualty rates drop 2% in July

Posted on: August 11, 2011

DALLAS—U.S. property/casualty insurance rates dropped an average of 2% in July compared with the same period last year, MarketScout reported Friday.

That marked the third consecutive month of slowing rates of decline, according to the Dallas-based electronic insurance exchange.

Meanwhile catastrophe exposed property rates rose 3% to 4% year over year, after the industry experienced a series of events in recent months ranging from the March 11 earthquake and tsunami in Japan to tornadoes in the U.S. The electronic insurance exchange said in a statement that the trend “further supports the position the market has bottomed out and is finally beginning a slow correction.”

The rates had fallen year over year by 4% in May and 3% in June.

The last time the composite rate for U.S. based property/casualty accounts moderated for three consecutive months was October 2005, MarketScout said.

Workers’ compensation rates rose 2% in July compared to the same period last year. In June they had gained by 1% year over year.

“Because of losses already sustained by property reinsurers, the impact of the 2011 hurricane season could play huge in property rates for the next 12 months,” MarketScout CEO Richard Kerr said in the statement.

Copyright © 2011 Crain Communications, Inc.

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