The composite rate for US business insurance held steady at minus 1 percent in September 2016.
“The market is locked into an average rate reduction of minus 1 percent," noted Richard Kerr, CEO of MarketScout. "It seems to be a standoff. Insurers are determined to force rate increases while insureds are pitting agents and brokers against each other so they will squeeze their assigned insurers for the best pricing. This forced competition helps buyers get the best deal the market has to offer.”
By coverage classification, commercial property rates increased from minus 1 percent to flat, or no increase. Professional liability rates increased from flat to up 1 percent. All other coverages were unchanged from August 2016 to September 2016.
When measured by account size, the only change from August 2016 to September 2016 was in large accounts ($250,001 to $1,000,000 premium), which adjusted from down 2 percent to down 1 percent.
By industry classification, there were no changes from August 2016 to September 2016.
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.