US commercial insurance premium rates are moderating, suggesting that the soft market may be limited in its length and severity, according to analyst Marketscout.

The insurance exchange says while a limited soft market would be surprising, more sophisticated underwriting tools “seem to be limiting market swings”.

CEO Richard Kerr says most major commercial classes were only down 1% in March, and others were unchanged, while personal lines premiums rose 1% over the past month.

He says although the trend for price decreases reversed last month, it is too soon to call an end to downward pressure.

“Perhaps the increasing flood and hailstorm losses had an impact, or perhaps it is just an aberration. We will know more over the next few months.”