Commercial Lines Composite Rates Up 1% In 3Q
The composite rate for commercial lines new and renewal placements averaged up 1 percent in the third quarter.
By coverage classification, only automobile rates increased from plus 4 to plus 5 percent. Inland marine, professional, D&O, EPLI, crime, and surety rates decreased by 1 percent. Rates for all other coverages remained the same.
As measured by account size, there was no change in rates for accounts under $250,000; however, interestingly, accounts over $250,000 adjusted from a rate reduction of minus 1 percent to nil or no rate increase.
By industry group, manufacturing, contracting, service, public entity, and transportation all incurred a 1 percent rate increase with transportation leading the increases at plus 5 percent. Rates for energy accounts were down from plus 1 percent to nil or no increase. Rates for all other groups remained unchanged.
Richard Kerr, CEO of MarketScout noted, “Rates are trading on a quarter-to-quarter basis in a very tight range. The market seems to be seeking a direction but with no real impetus, except for the property market, to go one way or the other. The recent hurricanes have not impacted property rates for the third quarter; however, adjustments in property rates will be recognized in the fourth quarter of 2017.”
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.
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