Still, the soft market is taking its toll, as “several major surplus lines insurers have decided to wait it out until the admitted market exits what is traditionally considered the surplus lines market,” according to Mr. Kerr.

“This strategy will be very wise if the market starts to turn and the larger admitted insurers begin restricting their appetite,” he said. “However, if we have the status quo, some surplus lines companies could lose significant market share, which will be nearly impossible to replace. After all, most state insurance regulators require agents and brokers to use an admitted insurer if one is available, at any price.”

The only changes MarketScout found in pricing by industry class were for contractors and energy accounts. Rates moderated slightly for contracting risks.

Energy risks, the firm found, corrected more notably, adjusting from an average rate reduction of 5 percent in June to 3 percent in July. “The economic recession has significantly impacted the price of oil and natural gas,” noted Mr. Kerr. “These commodities are off their 2008 highs by well over 50 percent. The resulting decrease in activity has significantly impacted the premiums received by insurers.”

He added that “as long-tail claims mature, the ongoing premium flow is not going to be robust enough to generate acceptable returns at current rate levels. Thus, we expect continued rate adjustments in the energy sector, with an overall rate increase by year's end.”

By coverage class, rates were down:

o 7 percent for general liability.

o 6 percent for workers' compensation and professional liability.

o 5 percent for commercial property, business-owners and commercial auto.

o 4 percent for business interruption, inland marine, umbrella excess and surety.

o 3 percent for employment practices liability and crime.

o 2 percent for directors and officers, as well as fiduciary.

By account size, MarketScout said prices overall were down:

o 4 percent for small accounts (up to $25,000 in premium).

o 6 percent for medium accounts ($25,001-to-$250,000).

o 6 percent for large accounts ($250,001 to $1 million).

o 5 percent for jumbo accounts (over $1 million).

By sector the report found manufacturing, contracting and service rates all down 6 percent; while habitational, public entity and transportation fell 5 percent.

MarketScout said it calculates U.S. p&c market conditions by analyzing data amalgamated at its insurance exchange (www.marketscout.com) and via in-person surveys conducted by The National Alliance for Insurance Education and Research.