RJ and Makay

Inflation is occurring in some industries, but not property-casualty. The composite rate for P&C insurance dropped 5% in February — the fourth straight month of 5% declines in the P&C market, reports MarketScout.

The market seems “stuck,” says MarketScout CEO Richard Kerr. “The rates by industry, coverage, or account size change a bit each month but generally all categories are staying in the same range of premium reductions.”

Some sobering news for the commercial lines P&C industry: The soft market isn't likely to loosen its grip on the industry in the near future and will probably persist through 2011.

According to "The Insurance Market in 2011: The Lingering Effects of the Recession Fuel Competition,” a report by consulting firm Advisen, commercial lines P&C insurance companies saw their pricing gains of the 2001-2003 hard market disappear during the Great Recession. Though it may seem there's nowhere for today's rock-bottom prices to go but up, the current economy simply won't permit an increase anytime soon.