The Dallas-based electronic insurance exchange found that rates fell for all classes of coverage it monitors, with commercial property and general liability experiencing the largest declines at 8% each. Surety rates decreased the least at 4%. Accounts of all sizes experienced decreases, with larger accounts reporting slightly greater decreases than their smaller counterparts.

"The trend towards rate moderation is continuing," Richard Kerr, MarketScout's executive officer, said in a statement accompanying the March results. For example, rates in March 2008 were 12% lower than March 2007.

"Underwriters received a better net rate for each risk they wrote in March, but their gross premiums probably decreased due to the impact of the current recession on almost all types of exposures, such as payrolls, gross receipts and property values. The moderation in rate reductions will yield more premiums but declining exposures will more than offset the improved rate," he said in the statement.

Mr. Kerr also said that insurers face continuing challenges in the current marketplace.

"Meeting premium growth projections will be a challenge in the current economic environment," he said. "In our view, it would be wise for insurers to restate top-line premium projections and focus on managing profitability," he said.

Copyright © 2009 Crain Communications, Inc.