In March, MarketScout's Market Barometer showed that rate increases picked up steam ever so slightly to plus-3%, but in April, a multitude of factors caused rates to moderate again to plus-2%.
MarketScout CEO Richard Kerr says, “The April composite commercial rate remained in positive territory at plus-2%, but we may see rate reductions by year end if the current trend continues. If you are in the market on a daily basis, you can almost feel a change in the wind. No reasonable insurer wants rate reductions. However, everyone seems to feel they are coming.”
MarketScout says insurers are finding reasons to fight over business, such the impact of reinsurance pricing and the competition there from catastrophe bonds and insurance-linked securities.
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