When insurance firms launched social media initiatives, the results were rewarding.
The composite rate for property and casualty insurance in the United States was up 3 percent in May as compared to up 2 percent in April. Richard Kerr, CEO of MarketScout noted, “Frankly, this is a somewhat of a surprise. Market sentiment supports rate moderation. However, as we all know, trends bump along before establishing a true direction. Over time, a trend will be established.”
By coverage class, property, businessowners policies (BOP) and general liability were all up from plus 2 to plus 3 percent. EPLI was down from plus 3 to plus 2 percent.
Medium accounts ($25,001 to $250,000 premium) were up from plus 2 to plus 3 percent. These medium sized accounts have a significant impact on the ultimate composite results because of their high percentage of the total premium volume. Large accounts ($250, 0001 to $1,000,000 premium) were up from plus 1 to plus 2 percent.
Manufacturing and energy industries were assessed an average rate increase of plus 3 percent as compared to plus 2 percent in April. Service and habitation industries moderated from plus 3 to plus 2 percent.
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 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