Our monthly look at the U.S. Commercial Lines Rate trends courtesy of MarketScout
Rates remained unchanged again in May 2015, as the US commercial insurance marketplace looks for direction said Dallas-based MarketScout. Each month, the insurance exchange reviews surveys conducted by The National Alliance. As a result, trends show that while rates remain steady, a majority of commercial accounts are simply securing renewal terms as “expiring“, while premiums stay steady unless the exposure base evolves.
Richard Kerr, CEO of MarketScout noted in the company’s May 2015 outlook report, “A lot of business renewed in May 2015. Overall, rates largely continue in a holding pattern. It seems both insureds and insurers are content to move forward with little to no changes. The only notable exception is transportation where the auto portion of these accounts is driving an average 2 percent increase.”
Here is is a rundown of the major points of interest from the May 2015 report:
- Business Owners Policies (BOP) were up from flat to plus 1 percent in May as compared to April 2015. EPLI coverage was down from plus 1 percent to flat, or 0 percent increase.
- By account size, rates matched April. Jumbo accounts (over $1,000,000 premium) continue to show the greatest reductions at minus 2 percent. Small (up to $25,000 premium) and medium ($25,001 to $250,000 premium) accounts were up 1 percent.
- Contracting was the only industry classification to change from April to May 2015. Contracting was up 1 percent.
A summary of the May 2015 rates by Cover Class
|By Coverage Class||APRIL||MAY|
|Commercial Property||Up 1%||Up 1%|
|Business Interruption||Up 0%||Flat|
|BOP||Up 0%||Up 1%|
|Inland Marine||Up 0%||Flat|
|General Liability||Up 0%||Flat|
|Commercial Auto||Up 0%||Up 2%|
|Workers’ Compensation||Up 0%||Flat|
|Professional Liability||Up 0%||Flat|
|D&O Liability||Up 0%||Flat|
The May numbers by Account Size
|By Account Size||APRIL||MAY|
|Small Accounts (Up to $25,000)||Up 1%||Up 1%|
|Medium Accounts ($25,001 – $250,000)||Up 1%||Up 1%|
|Large Accounts ($250,001 – $1 million)||Up 0%||Flat|
|Jumbo Accounts (Over $1 million)||Down 2%||Down 2%|
The May Numbers by Industry Class
|By Industry Class||APRIL||MAY|
|Contracting||Up 0%||Up 1%|
|Habitational||Up 1%||Up 1%|
|Public Entity||Up 0%||Flat|
|Transportation||Up 1%||Up 1%|