U.S. Commercial Insurance Rates Up 5% In May

The average composite rate for property and casualty insurance placements in the United States was up 5 percent for May 2013. This marks the third month in a row for a 5 percent increase.

By coverage classification, business owners policies (BOP), crime and fiduciary were slightly less expensive than the prior month. D&O, general liability and EPLI policies all experienced higher rates on a month-to-month comparison.

Medium sized accounts ($25,001 to $250,000) decreased in premium as compared to the prior month as did large accounts ($250,001 to $1,000,000).

By industry classification, manufacturing and public entities measured a small premium decrease from the prior month. Transportation accounts were assessed an increase in premium. 

According to Richard Kerr, CEO of MarketScout, “The commercial P&C market in the U.S. is continuing its steady trend of rate increases. There is ample capacity but underwriters continue to increase rates as appropriate.”

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 May 2013 rates by coverage, industry class and account size is set forth below.

For detailed rating analysis or market projections by industry class, coverage or account size, contact Vilma Scott at [email protected].

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 2012, MarketScout founded the Council for Insuring Private Clients(CIPC). MarketScout has offices in Arkansas, Arizona, California, Connecticut, Florida, Illinois, Indiana, Louisiana, Maryland, Mississippi, Oregon, Texas and Washington, D.C.