For the first time this year, rates have decreased as compared to the prior month. October rates were down 2 percent as compared to down 1 percent in June, July, August, and September.
According to Richard Kerr, CEO of MarketScout, “The composite rate includes all lines of commercial business. Insureds and brokers should carefully examine the rates for coverage and/or industry classifications that are germane to their placements.”
By coverage classification, two large placement segments: commercial property and general liability were down 2 percent in October as compared to flat in September. Business owners’ policies were down 1 percent as compared to flat in September. Commercial auto rates actually moderated from up 3 percent to up 2 percent.
When measured by account size only, medium accounts ($25,001 to $250,000 premium) adjusted from down 1 percent in September to down 2 percent in October.
Industry classification for contractors and service companies were down 2 percent in October as compared to down 1 percent in September. Energy adjusted to down 1 percent in October as compared to flat in September.
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.