The December 2011 composite rate index measured up 1 percent, closing out 2011 with a rate increase. MarketScout completed the December results after compiling data from its insurance exchange and survey information from agents and underwriters attending CIC institutes administered by The National Alliance for Insurance Education and Research.

According to Richard Kerr, CEO of MarketScout, "The December composite rate increase further supports our findings that the soft market cycle has ended. There will continue to be micro markets where rates decline, however, on a composite basis the trend is clearly towards rate increases. In January 2011, the composite rate decreased 5 percent. Rates slowly moderated until September when the market was officially flat, meaning the overall composite rate was the same as the prior year. In November, we started the market turn with a rate increase of 1 percent, the same as in December."

By Coverage class, workers’ compensation rates increased the most at plus 3 percent. Commercial property and general liability were next at plus 2 percent. There were no rate decreases in any coverage classification.

Jumbo accounts were flat while small accounts were hit with an average 2 percent rate increase.

When measuring rates by industry class, all sectors were up 1 percent except for habitational which was flat.

The National Alliance for Insurance Education and Research conducted pricing surveys used in MarketScout's analysis of market conditions. These surveys help to further corroborate MarketScout's actual findings, mathematically driven by new and renewal placements across the United States.

A summary of the December 2011 rates by coverage, industry class and account size is set forth below.

By Coverage Class

Commercial Property

Up 2%

Business Interruption

Up 1%

BOP

Up 2%

Inland Marine

Up 1%

General Liability

Up 2%

Umbrella/Excess

Flat

Commercial Auto

Flat

Workers' Compensation

Up 3%

Professional Liability

Flat

D&O Liability

Up 1%

EPLI

Up 1%

Fiduciary

Flat

Crime

Flat

Surety

Up 1%

By Account Size

Small Accounts
Up to $25,000

Up 2%

Medium Accounts
$25,001 - $250,000

Up 1%

Large Accounts
$250,001 - $1,000,000

Up 1%

Jumbo Accounts
Over $1,000,000

Flat

By Industry Class

Manufacturing

Up 1%

Contracting

Up 1%

Service

Up 1%

Habitational

Flat

Public Entity

Up 1%

Transportation

Up 1%

Energy

Up 1%