Rates Steady in February

Mar Bar CL

Low volume results in little movement

Commercial property and casualty rates in the US were largely unchanged in February as compared to the prior month. The composite rate remains at minus 4 percent.

Richard Kerr, CEO of MarketScout, noted, “There was little movement in rates in most sectors. The only notable change was in manufacturing, which decreased from minus 2 percent in January 2016, to minus 5 percent in February 2016. Traditionally, February has always been a slow insurance month, so the lack of activity in rates is not surprising.”

By coverage classification, business interruption, inland marine and commercial auto were priced more competitively in February as compared to January. The rates for other coverages remained steady.

Large and jumbo accounts were also down more in February, with large ($250,001 to $1,000,000) down from minus 4 percent in January 2016, to minus 5 percent in February 2016. Jumbo accounts (over $1,000,000), were down from minus 3 percent to minus 4 percent in the same period. All other account sizes matched the same composite rate from the prior month.

By industry classification, manufacturing had a significant rate decrease from minus 2 percent in January, to minus 5 percent in February. Habitational was down another 1 percent in February for a total of minus 6 percent. All other industry rates remained the same as in January.

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 February 2016 rates by coverage, industry class and account size is set forth below.

By Coverage Class
 
Commercial Property
Down 5%
Business Interruption
Down 3%
BOP
Down 1%
Inland Marine
Down 3%
General Liability
Down 2%
Umbrella/Excess
Down 3%
Commercial Auto
Down 1%
Workers’ Compensation
Down 3%
Professional Liability
Down 4%
D&O Liability
Down 2%
EPLI
Flat
Fiduciary
Down 2%
Crime
Flat
Surety
Down 1%

(Click to view larger image.)


By Account Size
 
Small Accounts
Up to $25,000
Down 4%
Medium Accounts
$25,001 – $250,000
Down 5%
Large Accounts
$250,001 – $1 million
Down 5%
Jumbo Accounts
Over $1 million
Down 4%

(Click to view larger image.)


By Industry Class
 
Manufacturing
Down 5%
Contracting
Down 3%
Service
Down 3%
Habitational
Down 6%
Public Entity
Down 3%
Transportation
Down 4%
Energy
Down 3%

(Click to view larger image.)


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

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