Marsh predicts ongoing soft U.S. commercial lines through 2010 Q4

Soft U.S. commercial insurance market conditions are expected to persist through 2010 Q4, Marsh reported.So far in 2010 Q4, Marsh clients renewing their programs have experienced average rate reductions across all major lines of business compared to 2009 Q4. Marsh’s preliminary 2010 Q4 figures indicate that:

• property rates declined an average 4.4%;
• general liability rates declined an average 6.9%;
• D&O liability rates for public companies declined an average of 7% for primary programs and 10.3% for total programs; and
• employment practices liability rates declined an average of 4.6% for primary programs, and 4.7% for total programs.

The rate update is based on data from Marsh’s Global Benchmarking Portal and reflects transactions brokered by Marsh through early November 2010.”Marsh’s preliminary data indicates that rates are continuing to trend downward, which is good news for our clients,” said Dean Kilsura, Marsh’s U.S. risk practices leader. “Barring a market-changing event, we do not expect this trend to reverse in the near future.”