August is traditionally a slower month for commercial insurance renewals and this year was no different from previous years. The August composite rate for the P&C market held steady at plus 4 percent, matching the index for July.
By coverage classification, Business owners (BOP) policy pricing increased from plus 4 percent to plus 5 percent. General liability also increased at plus 6 percent, up from plus 5 percent in July. Inland marine, commercial auto, D&O and surety all moderated with rates down 1 percent from the prior month.
Small accounts (up to $25,000 premium) moderated from plus 6 percent to plus 5 percent. Medium sized accounts ($25,001 to $250,000) increased 1 percent to plus 6 percent. Large and jumbo account rates held steady at plus 3 percent and plus 2 percent respectively.
The rates for manufacturing and energy risks were up 1 percent over July. Public entity and transportation accounts decreased by 1 percent. The other industry classifications were unchanged.
MarketScout CEO, Richard Kerr, profiled the commercial lines rates noting, “With no wind, no quake, and no big cat exposures looming, insurers are happy to sit tight and hold the status quo. August is often a slow month with few significant renewals so it is not unusual to see a static market.”
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 August 2013 rates by coverage, industry class and account size is set forth below.
By Coverage Class
By Account Size
Up to $25,000
$25,001 – $250,000
$250,001 – $1 million
Over $1 million
By Industry Class
For detailed rating analysis or market projections by industry class, coverage or account size, contact Vilma Scott at firstname.lastname@example.org.
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 California, Connecticut, Florida, Illinois, Indiana, New Jersey, Texas and Washington, D.C..