US Commercial Rates Moderate in March

Mar Bar CL

Composite index down 3 percent

The US commercial insurance market composite rate index has slightly decreased the pace of price-cutting after three consecutive months at minus 4 percent.

“One month certainly is not a trend but insurers did moderate their aggressive pricing in March,” noted Richard Kerr, CEO of MarketScout.

Commercial property, inland marine, general liability, umbrella, workers’ compensation, and professional lines all moderated by 1 percent.

Small accounts (up to $25,000 premium) were down 3 percent as compared to down 4 percent the prior month. Large accounts ($250,000 to $1,000,000) and medium accounts ($25,001 – $250,000) were down 4 percent as compared to down 5 percent the prior month. Jumbo accounts were unchanged.

By industry classification, manufacturing, contracting, and service all moderated by 1 percent as compared to the prior month. Habitational rates were minus 4 percent in March as compared to minus 6 percent in February.

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

By Coverage Class
 
Commercial Property
Down 4%
Business Interruption
Down 3%
BOP
Down 1%
Inland Marine
Down 2%
General Liability
Down 1%
Umbrella/Excess
Down 2%
Commercial Auto
Down 1%
Workers’ Compensation
Down 2%
Professional Liability
Down 3%
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 3%
Medium Accounts
$25,001 – $250,000
Down 4%
Large Accounts
$250,001 – $1 million
Down 4%
Jumbo Accounts
Over $1 million
Down 4%

(Click to view larger image.)


By Industry Class
 
Manufacturing
Down 4%
Contracting
Down 2%
Service
Down 2%
Habitational
Down 4%
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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