Commercial Rates Continue Slow Slide

US P&C Rates Plus 1% in October

The composite rate for US commercial insurance was plus 1 percent in October 2014.

Richard Kerr, CEO of MarketScout, commented, "As expected, the US composite commercial rate continues its slow slide. We are almost completely past hurricane season, so we expect continued pressure on property rates. Workers' compensation rates are also down from last month; however, a few large insurers could be facing some challenges on their comp book. If so, this could moderate the slide in WC premiums."

When measuring rates by coverage, rates were the same as in the prior month with the exception of automobile and professional liability, which were up 1 percent from the prior month to plus 3 and plus 2 percent respectively. Property and workers' compensation rates were more competitive as rates for both lines of coverage were reduced by 1 percent.

By account size, only small account rates changed from the prior month as they decreased from plus 3 to plus 2 percent. Rates for all other account sizes remained the same.

By industry, only manufacturing and energy risks experienced a rate increase as compared to last month, both going from plus 1 to plus 2 percent. Contracting, service, and transportation were all down an additional 1 percent. All other industries remained unchanged when compared to September.

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

By Coverage Class

Commercial Property

Up 1%

Business Interruption

Up 1%

BOP

Up 2%

Inland Marine

Up 1%

General Liability

Up 2%

Umbrella/Excess

Up 2%

Commercial Auto

Up 3%

Workers' Compensation

Up 1%

Professional Liability

Up 2%

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 2%

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 2%

Contracting

Up 3%

Service

Up 1%

Habitational

Up 1%

Public Entity

Up 1%

Transportation

Up 2%

Energy

Up 2%

 
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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