Rates at the start of 2015 signal to insurers to start preparing for a soft market
There was a zero percent increase in the January 2015 composite rate for property and casualty insurance rates and corresponding premiums according to Dallas-based MarketScout, which tracks the monthly rates. In fact, the only changes documented from December 2014 to January 2015 were in commercial property which was up from flat to plus 1 percent and EPLI which was down from 2 percent to 1 percent. Overall, insurers will likely have begun preparing for the soft market.
“There are differing views on how long and deep this pending soft market cycle may last; however, few insurers are projecting rate increases,” said MarketScout CEO Richard Kerr, in his monthly rate release.
As for industry class, the only change in rates noted was in the energy sector. In December 2014 it measured at plus 1 percent versus measuring flat in January 2015. There were no changes noted by account size.
The January numbers by Coverage Class
|By Coverage Class||January 2015 Rates|
|Commercial Property||Up 1%|
|Business Interruption||Up 0%|
|Inland Marine||Up 0%|
|General Liability||Up 1%|
|Commercial Auto||Up 1%|
|Workers’ Compensation||Up 0%|
|Professional Liability||Up 1%|
|D&O Liability||Up 1%|
The January numbers by Account Size
|By Account Size||January 2015|
|Small Accounts (Up to $25,000)||Up 2%|
|Medium Accounts ($25,001 – $250,000)||Up 1%|
|Large Accounts ($250,001 – $1 million)||Up 0%|
|Jumbo Accounts (Over $1 million)||Up 0%|
The January Numbers by Industry Class
|By Industry Class||January 2015|
|Public Entity||Up 0%|