When insurance firms launched social media initiatives, the results were rewarding.
The composite rate for US based exposures barely matched year-end 2013 at plus 3 percent. According to Richard Kerr, CEO of MarketScout, “Rates for five coverage classes declined 1 percent as compared to one year ago. No coverage classifications had a rate increase. By account size, half the accounts measured enjoyed premium reductions of 1 percent. By industry class, four out of seven were down 1 percent. If we were to post rate changes by fractional increments, you would see the actual increase at 2.55 percent, so the moderation trend continues.”
Additional capacity, insurance linked securities and a more stable economic environment (despite recent stock market adjustments) are partly responsible for the moderating rate environment.
The 2013 calendar year began with a composite rate increase of plus 5 percent. The composite rate held steady at plus 5 percent for most of the first half of 2013 then began to moderate slightly in July, ending up at plus 3 percent at year-end.
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 January 2014 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 email@example.com.
MarketScout, an insurance distribution and underwriting company headquartered in Dallas, compiles the Commercial and Personal Lines Market Barometers. 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 Dallas, California, Connecticut, Florida, Illinois, Indiana, Michigan, Nebraska, New Jersey, Texas and Washington, D.C.