U.S. Commercial Insurance Rates Up 5% in May

Steady Rate Increases Continue


The average composite rate for property and casualty insurance placements in the United States was up 5 percent for May 2013. This marks the third month in a row for a 5 percent increase.


By coverage classification, business owners policies (BOP), crime and fiduciary were slightly less expensive than the prior month. D&O, general liability and EPLI policies all experienced higher rates on a month-to-month comparison.


Medium sized accounts ($25,001 to $250,000) decreased in premium as compared to the prior month as did large accounts ($250,001 to $1,000,000).


By industry classification, manufacturing and public entities measured a small premium decrease from the prior month. Transportation accounts were assessed an increase in premium.


According to Richard Kerr, CEO of MarketScout, "The commercial P&C market in the US is continuing its steady trend of rate increases. There is ample capacity but underwriters continue to increase rates as appropriate."



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 May 2013 rates by coverage, industry class and account size is set forth below.

1

By Coverage Class

Commercial Property

Up6%

Business Interruption

Up 3%

BOP

Up 4%

Inland Marine

Up 3%

General Liability

Up 6%

Umbrella/Excess

Up 5%

Commercial Auto

Up 5%

Workers' Compensation

Up 6%

Professional Liability

Up 3%

D&O Liability

Up 4%

EPLI

Up 4%

Fiduciary

Up 2%

Crime

Up 2%

Surety

Up 2%



Click to enlarge
Click image to enlarge

By Account Size

Small Accounts
Up to $25,000

Up 5%

Medium Accounts
$25,001 - $250,000

Up 5%

Large Accounts
$250,001 - $1,000,000

Up 4%

Jumbo Accounts
Over $1,000,000

Up 3%



Click to enlarge
Click image to enlarge

By Industry Class

Manufacturing

Up 6%

Contracting

Up 5%

Service

Up 5%

Habitational

Up 5%

Public Entity

Up 3%

Transportation

Up 6%

Energy

Up 4%



Click to enlarge
Click image to enlarge

For detailed rating analysis or market projections by industry class, coverage or account size, contact Vilma Scott at This email address is being protected from spambots. You need JavaScript enabled to view it. .


About MarketScout
The Commercial and Personal Lines Market Barometers are compiled by MarketScout, an insurance distribution and underwriting company headquartered in Dallas. 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, Arizona, California, Connecticut, Florida, Illinois, Indiana, Louisiana, Maryland, Mississippi, Oregon, Texas and Washington, D.C.

The composite market conditions from 2001 to 2013 are set forth below.

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