According to MarketScout, the February 2013 commercial insurance rate index for the U.S. was up 4 percent as compared to a year earlier.
Richard Kerr, CEO of MarketScout noted, “Over the last year, transportation and energy have lead rate increases most of the time. However, for February, transportation was up 4 percent and energy was up 3 percent. The only industry with a lesser rate increase was public entities. Manufacturing, service and habitational companies lead the February industry rate increases at plus 6 percent.”
By account size, rates continue to be more competitive the larger the account. Small accounts were up 6 percent and jumbo accounts were up 2 percent.
By coverage classification, property insurance led the pack with a rate increase of plus 6 percent. General liability rates were considerably more competitive with rates up 4 percent as opposed to up 6 percent the month before.
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 February 2013 rates by coverage, industry class and account size is set forth below.
|
By Coverage Class
|
|
Commercial Property
|
Up 6%
|
|
Business Interruption
|
Up 3%
|
|
BOP
|
Up 4%
|
|
Inland Marine
|
Up 3%
|
|
General Liability
|
Up 4%
|
|
Umbrella/Excess
|
Up 5%
|
|
Commercial Auto
|
Up 5%
|
|
Workers’ Compensation
|
Up 4%
|
|
Professional Liability
|
Up 4%
|
|
D&O Liability
|
Up 4%
|
|
EPLI
|
Up 3%
|
|
Fiduciary
|
Up 2%
|
|
Crime
|
Up 2%
|
|
Surety
|
Up 1%
|
|
By Account Size
|
|
Small Accounts
|
Up 6%
|
|
Up to $25,000
|
|
|
|
Medium Accounts
|
Up 5%
|
|
$25,001 – $250,000
|
|
|
|
Large Accounts
|
Up 3%
|
|
$250,001 – $1 million
|
|
|
|
Jumbo Accounts
|
Up 2%
|
|
Over $1 million
|
|
By Industry Class
|
|
|
Manufacturing
|
Up 6%
|
|
Contracting
|
Up 5%
|
|
Service
|
Up 6%
|
|
Habitational
|
Up 6%
|
|
Public Entity
|
Up 2%
|
|
Transportation
|
Up 4%
|
|
Energy
|
Up 3%
|
For more detailed rating analysis or market projections by industry class, coverage or account size, contact Vilma Scott at vscott@marketscout.com.
About MarketScout
The Commercial and Personal Lines Market Barometers are compiled by MarketScout, an insurance distribution and underwriting company headquartered in Dallas. The firm owns and operates the MarketScout Exchange at marketscout.comas well as over 40 other online and traditional underwriting and distribution venues. MarketScout founded the Entrepreneurial Insurance Alliance(EIA) in 2009. In 2010, MarketScout launched MarketScout Wholesale, LLC (MSW), to complement its electronic underwriting and distribution strategy. In 2012, MarketScout founded the Council for Insuring Private Clients(CIPC). MarketScout and MSW have offices in Arizona, Arkansas, California, Connecticut, Florida, Indiana, Illinois, Louisiana, New York, Oregon, Tennessee, Texas and Washington, D.C.
