When insurance firms launched social media initiatives, the results were rewarding.
Commercial insurance rates in the United States adjusted downward from plus 3 percent in May to plus 2 percent in June 2014.
According to Richard Kerr, CEO of Dallas based insurance exchange MarketScout, “The commercial market continues to adjust downward as a result of improved underwriting results and an abundance of capacity. In the aggregate, rates are still up slightly but the trend for rate moderation continues.”
By coverage class, umbrella, workers’ compensation, D&O, and EPLI all moderated from the prior month with each registering a plus 1 percent rate increase. Workers’ Compensation rates adjusted the most from plus 3 percent in May to plus 1 percent in June.
When measuring by account size, small and medium accounts remained at plus 3 percent. Large accounts ($250,001 to $1,000,000) adjusted from plus 2 percent to plus 1 percent and jumbo accounts ($1,000,001 and up) were up 0 percent or flat. According to Kerr, “This is the first plus 0 percent measurement since the market turned towards rate increases in November 2011. It’s not surprising the jumbo accounts have gone flat as the name brand account continues to allure underwriters despite the lower ROE. There is a pricing benefit to being a name brand, Fortune 1000 insurance buyer.”
By industry class, manufacturing, transportation and energy all adjusted their month-over-month rate increases downward by 1 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 June 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