Commercial Insurance Pricing Steady

Rates increase 1.5% in September

The composite rate for commercial insurance coverage in the US rose an average of 1.5 percent in September 2014.

Contractors paid the highest year on year increase at plus 4 percent followed by transportation at plus 3 percent. Service accounts were plus 2 percent while manufacturing, habitational, public entity and energy risks measured plus 1 percent.

By size of premium, small account rates were up 3 percent, medium accounts up 2 percent, large accounts up 1 percent and jumbo accounts had no rate increases.

By line of coverage, inland marine, professional liability, fiduciary, crime, surety and business interruption coverages were all up 1 percent. Commercial property, BOP, general liability, auto, umbrella, workers' compensation, D&O, and EPLI were up 2 percent.

Richard Kerr, CEO of MarketScout profiled industry results by noting, "We are measuring changes with a high degree of sensitivity because the monthly changes are ever so slight. However, rates clearly continue to drift downward."

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 September 2014 rates by coverage, industry class and account size is set forth below.

By Coverage Class

Commercial Property

Up 2%

Business Interruption

Up 1%

BOP

Up 2%

Inland Marine

Up 1%

General Liability

Up 2%

Umbrella/Excess

Up 2%

Commercial Auto

Up 2%

Workers' Compensation

Up 2%

Professional Liability

Up 1%

D&O Liability

Up 2%

EPLI

Up 2%

Fiduciary

Up 1%

Crime

Up 1%

Surety

Up 1%

 
 Click image to enlarge

 

By Account Size

Small Accounts

Up 3%

Up to $25,000

Medium Accounts

Up 2%

$25,001 - $250,000

Large Accounts

Up 1%

$250,001 - $1 million

Jumbo Accounts

Up 0%

Over $1 million

 
Click image to enlarge

 

By Industry Class

Manufacturing

Up 1%

Contracting

Up 4%

Service

Up 2%

Habitational

Up 1%

Public Entity

Up 1%

Transportation

Up 3%

Energy

Up 1%

 
Click image to enlarge

 

For detailed rating analysis or market projections by industry class, coverage or account size, contact Vilma Scott at vscott@marketscout.com.


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 Dallas, California, Connecticut, Florida, Illinois, Indiana, Michigan, Nebraska, New Jersey, Rhode Island, Texas and Washington, D.C.

 

 

The composite market conditions from 2001 to 2014 are set forth below.

 

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