June Commercial Insurance Rates Moderate

Mar Bar CL

June composite rate minus 1 percent

“Insurers are getting tired of cutting rates,” said Richard Kerr, CEO of MarketScout.

The composite rate for commercial insurance placed in the United States moderated in June to minus 1 percent from minus 2 percent in May 2016.

According to Kerr, “There are still pockets of very competitive business; however, it is beginning to look like insurers are willing to maintain the rate reductions of the past few years and not cut rates even further.”

Coverage classifications business owners policies (BOP), umbrella and professional liability all moderated by 1 percent in June 2016 as compared to the prior month. EPLI rates were up 1 percent. Commercial auto rates moved from flat to plus 2 percent.

By account size, medium ($25,001 to $250,000) and large ($250,001 to $1,000,000) accounts moderated to minus 1 percent and 2 percent respectively. For all other account sizes, rates did not change.

Rates for every industry class, except habitational and transportation, moderated by 1 percent. Habitational rates were unchanged at minus 2 percent while rates for transportation accounts moved significantly from minus 2 percent to plus 1 percent.

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

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

(Click to view larger image.)


By Account Size
 
Small Accounts
Up to $25,000
Down 1%
Medium Accounts
$25,001 – $250,000
Down 1%
Large Accounts
$250,001 – $1 million
Down 2%
Jumbo Accounts
Over $1 million
Down 3%

(Click to view larger image.)


By Industry Class
 
Manufacturing
Down 2%
Contracting
Down 1%
Service
Down 1%
Habitational
Down 2%
Public Entity
Down 1%
Transportation
Up 1%
Energy
Down 1%

(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, Georgia, Illinois, Indiana, Nebraska, Nevada, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, and Washington, D.C.

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