Moderate increases continue in midst of improved insurer profits says MarketScout
Mirroring US Personal Insurance Rates in March, commercial insurance rates in the US also adjusted upwards in March three percent as compared to two percent in February. The result shows a “slow but steady” rate increases for commercial rates since November 2011.
Insurers target a specific ROE. Despite improving margins, insurers are still not meeting their profit targets, thus the continued marginal increases,” noted Richard Kerr, CEO of MarketScout when discussing the current commercial market rate environment.
Workers’ compensation, D&O, and EPLI all saw a rate increase of one percent over February’s numbers. As for percent increases viewed by account size, accounts with premium between $25,000 to $1,000,000 saw a three percent rate increase as opposed to two percent last month. As for industries, both manufacturing and energy accounts lead the way this month will the highest increase in rates with manufacturing at plus-four percent and energy at plus two percent.
An in-depth look at the numbers…
|By Coverage Class||Rate Change|
|Commercial Property||Up 3%|
|Business Interruption||Up 2%|
|Inland Marine||Up 1%|
|General Liability||Up 2%|
|Commercial Auto||Up 4%|
|Workers’ Compensation||Up 4%|
|Professional Liability||Up 2%|
|D&O Liability||Up 3%|
|By Account Size||Rate Change|
Up to $25,000
Over $1 million
|By Industry Class||Rate Change|
|Public Entity||Up 2%|