Slowly but surely, the composite rate for US property and casualty insurance is closing in on flat or no increases. According to Richard Kerr, CEO of MarketScout, "Insurers really don't want to enter another era of rate declines; but in order to hold business, most of the market is being forced to moderate pricing. If this trend continues, we should see annual rate declines very soon."
As measured by coverage classification, property rates were actually up slightly at plus 3 percent. Business interruption was down one percent to flat as were fiduciary and crime. Business owners' policies and commercial auto moderated from plus 3 percent to plus 2 percent. Umbrella liability coverage moderated from plus 2 percent to plus 1 percent. Workers' Compensation rates were up from plus 1 percent to plus 2 percent.
Rates as measured by account size and industry classification remained the same as in July 2014.
August is traditionally a slower month for insurance placements so the volume of premium measured is less than normal.
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 August 2014 rates by coverage, industry class and account size is set forth below.
For detailed rating analysis or market projections by industry class, coverage or account size, contact Vilma Scott at firstname.lastname@example.org.
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.