Commercial Lines Rates Up 1% In 2Q
US Commercial Lines Rates Up 1 Percent in Second Quarter
Auto Related Exposures Assessed Largest Rate Increases Through the first two quarters of 2017, insurer rates continue to trend upward. The composite rate for property and casualty insurance in the US was up 1 percent in the second quarter. “We now have two consecutive quarters of composite rate premium increases. Insurers are adjusting pricing as they should based upon losses incurred, expense loads and targeted returns on equity,” noted Richard Kerr, CEO and Founder of MarketScout. By coverage class, commercial property and inland marine adjusted from down 1 percent in the first quarter, to up 1 percent in the second quarter. Commercial auto rates increased from up 3 percent to up 4 percent. EPLI also increased from up 1 percent to up 2 percent. Fiduciary adjusted downward to flat or no increase as compared to up 1 percent in the prior quarter. All other coverage classifications were unchanged from the prior quarter. Small accounts (under $25,000 premium) increased from up 1 percent to up 2 percent, medium accounts ($25,001 - $250,000) increased from flat to plus 1 percent. Large accounts ($250,001 - $1 million) were unchanged and jumbo accounts (over $1 million) were down 1 percent as compared to down 2 percent the prior quarter. By industry class, public entity rates moderated from up 1 percent to flat. Transportation risks experienced slightly lower rate increases with second quarter rates up 4 percent as compared to 5 percent first quarter. 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 second quarter 2017 rates by coverage, industry class and account size is set forth below. |
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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 Arkansas, California, Florida, Georgia, Illinois, Indiana, Nebraska, Pennsylvania, South Carolina, Tennessee, Texas, and Washington, D.C. |
Personal Lines Increase In 2Q
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