A look at statistics showing how the insurance industry fared in consumer class action settlements.
Year-end 2013 closes with ample capacity and rates down slightly. When comparing all coverages, commercial automobile was the most expensive with rates up 4 percent. By Industry, transportation and contracting risks were assessed the largest rate increases at plus 5 percent. Public entities were assessed the lowest rate increases at plus 2 percent. By account size, small accounts (up to $25,000 premium) had the highest rate increases at plus 5 percent, while the largest accounts ($1,000,000 plus premium) only had rate increases of plus 1 percent.
Richard Kerr, CEO of MarketScout, profiled the status of the commercial insurance marketplace as follows, “If you are in favor of significant rate increases in 2014 you may be disappointed sans a catastrophic event or some sort of new tort liability issue. Investors are clamoring for decent returns in instruments not directly connected to the stock market. When this occurs, smart people come up with creative solutions to put these investor funds to work. Insurance Linked Securities (ILS) and new age reinsurance structures have opened the insurance market to many new investors and as a result, additional capacity. This added capacity may well put additional pressure on rates in 2014.”
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.
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.com as 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.