In the United States, the composite rate in the third quarter 2018 continued to be up 2.5 percent, matching the rate increase of the second quarter.
Richard Kerr, CEO of MarketScout, outlined the rating environment by noting, “Rates continue to move slowly upward as insurers take a measured approach to price increases. However, transportation and commercial auto rates continue to be assessed with more aggressive rate increases. Both trucking and commercial auto risks were assessed rate increases of plus 6 percent. Clearly, insurers feel these exposures are tough and merit aggressive rate increases. Moreover, the market is accepting the increases because of the small number of insurers willing to write commercial auto and trucking risks.”
Property and business interruption coverages were down 1 percent from the second to the third quarter 2018. General liability rates increased from plus 1 to plus 3 percent. The only other change was in surety from plus 1 percent to no increase of flat. The only rate decrease remained with workers’ compensation as rates declined on average by 3 percent in the third quarter, matching the decrease of the second quarter.
Jumbo accounts were assessed a 2 percent increase in the third quarter which was up 1 percent. Rates for all other account sizes were unchanged.
By industry class, the only changes from the second to the third quarter were contractors where rates were up from plus 3 to plus 4 percent and habitational where rates were down from plus 4 to plus 3 percent.
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.