US property and casualty composite rate index drops 9% in November

The U.S. property and casualty composite rate index for Nov. 2008 maintained single-digit premium reductions (9%) generated in October, according to MarketScout’s Market Barometer. Relative to other lines, commercial property and general liability rates were reduced the most in November (an 11% reduction), while professional liability and umbrella/excess rates were down 7%. Commercial auto rates were down 9%, while surety and D&O liability had the smallest rate decrease at 5% in November, MarketScout reported.“It appears there is a trend toward greater rate reductions for larger insureds,” Richard Kerr, founder and CEO of MarketScout, said in the report. “Accounts generating premium in excess of US$250,000 received an average rate reduction of 10% while the smaller accounts were down 8%. “Small business owners’ policies, which appeared to be on a continuous rate reduction cycle, reversed course and were down 9% in November as compared to down 12% in October.”