Commercial Rates Moderate In March
The US commercial insurance market composite rate index has slightly decreased the pace of price-cutting after three consecutive months at minus 4 percent.
“One month certainly is not a trend but insurers did moderate their aggressive pricing in March,” noted Richard Kerr, CEO of MarketScout.
Commercial property, inland marine, general liability, umbrella, workers’ compensation, and professional lines all moderated by 1 percent.
Small accounts (up to $25,000 premium) were down 3 percent as compared to down 4 percent the prior month. Large accounts ($250,000 to $1,000,000) and medium accounts ($25,001 – $250,000) were down 4 percent as compared to down 5 percent the prior month. Jumbo accounts were unchanged.
By industry classification, manufacturing, contracting, and service all moderated by 1 percent as compared to the prior month. Habitational rates were minus 4 percent in March as compared to minus 6 percent in February.
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 March 2016 rates by coverage, industry class and account size is set forth below.
By Coverage Class | |
Commercial Property | Down 4% |
Business Interruption | Down 3% |
BOP | Down 1% |
Inland Marine | Down 2% |
General Liability | Down 1% |
Umbrella/Excess | Down 2% |
Commercial Auto | Down 1% |
Workers’ Compensation | Down 2% |
Professional Liability | Down 3% |
D&O Liability | Down 2% |
EPLI | Flat |
Fiduciary | Down 2% |
Crime | Flat |
Surety | Down 1% |
By Account Size | |
Small Accounts | Down 3% |
Up to $25,000 | |
Medium Accounts | Down 4% |
$25,001 – $250,000 | |
Large Accounts | Down 4% |
$250,001 – $1 million | |
Jumbo Accounts | Down 4% |
Over $1 million |
By Industry Class | ||
Manufacturing | Down 4% | |
Contracting | Down 2% | |
Service | Down 2% | |
Habitational | Down 4% | |
Public Entity | Down 3% | |
Transportation | Down 4% | |
Energy | Down 3% |
For detailed rating analysis or market projections by industry class, coverage or account size, contact Vilma Scott at [email protected]. |
About MarketScout
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 California, Connecticut, Florida, Georgia, Illinois, Indiana, Nebraska, Nevada, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, and Washington, D.C. |
Family Health Hawaii Ordered Into Liquidation
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News