The composite rate for property and casualty business placed in the United States measured minus 4 percent in January 2016.
"Commercial property rates dropped from minus 2 percent in December 2015 to minus 5 percent in January 2016," stated Richard Kerr, CEO of MarketScout. According to Kerr, "Commercial property insurers are getting ready to scratch each other's eyes out as they fight for market share. We see nothing to prevent commercial property rates from dropping further."
In addition to commercial property, business interruption, BOPs, professional liability, and D&O coverages were all more competitively priced in January 2016 vs. December 2015. Umbrella/Excess liability and workers' compensation rates actually increased slightly over the same period.
By accounts size, rates for small and medium sized accounts (all under $250,000) were more competitive in January 2016 than in the prior month. Large and jumbo accounts (over 250,001) were assessed rates slightly higher in January versus December.
Transportation companies were assessed rate decreases of 4 percent in January 2016 versus 2 percent in December 2015. Rates for manufacturing and energy accounts were slightly higher in January 2016 than in December 2015. All other industries remained unchanged.
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 January 2016 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 email@example.com.
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 California, Connecticut, Florida, Illinois, Indiana, Nebraska, Pennsylvania, Rhode Island, South Carolina, Texas, Tennessee and Washington, D.C.
The composite market conditions from 2001 to 2016 are set forth below.