The US property and casualty (P&C) sector is braced for a soft market next year, according to analyst MarketScout.

CEO Richard Kerr says the sector’s composite rate rise has eased from 2% in June to 1.5% in July and 1% last month. “If this trend continues, we should see annual rate declines very soon.”

Just two P&C classes experienced higher growth rates last month: property rates grew 3%, up from 2% in July, while workers’ compensation grew 2%, up from 1%. 

Rates for business interruption and crime were both flat, down from 1% growth.

General liability (2%), professional liability (2%) and inland marine (1%) growth rates were unchanged from the previous month.

Rates on accounts of up to $US25,000 ($26,649) grew 3% and “jumbo” accounts of more than $US1 million ($1.07 million) were flat.

Personal insurance lines moved to 2% composite growth last month from 3% growth in July.

“Personal insurance is becoming more competitive due to the limited number of major catastrophes this year, better automation systems and new market entrants,” Mr Kerr said.