Composite P/C Rate Up 2.5% In 2Q

Tough conditions for trucking and auto continued. Richard Kerr, CEO of MarketScout, noted, “Insurers seem to have a longer memory these days. It’s hard to find a commercial insurer who hasn’t suffered from a book of auto/trucking risks in the past ten years. As a result of prior bad experiences and the challenges we outlined in our first quarter 2018 barometer, there are fewer companies willing to write auto or trucking risks. The demand is exceeding the supply so rates continue to trend upward.”

As compared to the first quarter of 2018 property, auto, D&O, and EPLI rates increased. Business Interruption and general liability rates moderated. Workers’ compensation rates decreased from minus 2 percent to minus 3 percent. All other coverage classifications held steady.

Small accounts were assessed a slight rate increase while all other accounts were unchanged from the first to the second quarter 2018.

Transportation risks were assessed a notable rate increase measuring up 6 percent in the second quarter 2018 as compare to up 4 percent in the first quarter. Habitational, service, contracting, and manufacturing risks were charged a slight rate increase from the first quarter 2018 to the second. All other industry groups remained unchanged.

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 2018 rates by coverage, industry class and account size is set forth below.