November Composite P&C Rate Up 5 Percent
Transportation and Manufacturing Exposures Lead Rate Increases
In November 2012, the overall composite rate for insuring commercial accounts in the United States was up 5 percent as compared to November 2011.
By coverage classification, property, excess liability, general liability and workers’ compensation rates increased the most at plus 5 percent. By account size, all accounts under $1,000,000 premium were up 5 percent as compared to November 2011. Jumbo accounts over $1,000,000 premium were actually down from plus 2 percent in October to plus 3 percent in November. By industry class, manufacturing had the most significant month on month rate increase at plus 6 percent as compared to plus 4 percent the prior month. Transportation accounts were also up 6 percent.
“The manufacturing rate increase was surprising,” said Richard Kerr, CEO of MarketScout. “Normally, manufacturing is a very stable industry class absent quick pricing changes. Going from plus 4 percent to plus 6 percent was unusual. As for transportation, the trucking segment of this industry class is what is really driving the rate increases for the class at plus 6 percent. The losses suffered by the trucking market have been considerable over the last several years. We expect further rate increases for trucking exposures.”
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 November 2012 rates by coverage, industry class and account size is set forth below.
For more detailed rating analysis or market projections by industry class, coverage or account size, contact Vilma Scott at [email protected].
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 2010, MarketScout launched MarketScout Wholesale, LLC (MSW), to complement its electronic underwriting and distribution strategy. In 2012, MarketScout founded the Council for Insuring Private Clients. MarketScout and MSW have offices in Arizona, Arkansas, California, Connecticut, Florida, Indiana, Illinois, Louisiana, New York, Oregon, Tennessee, Texas and Washington, D.C.