Our monthly look at the U.S. Commercial Lines Rate trends courtesy of MarketScout
US insurers may be getting more aggressive with pricing says Dallas-based MarketScout in its latest look at commercial insurance rate trends. According to the insurance distribution and underwriting company’s latest barometer, the commercial insurance market has officially become soft again with a composite rate of minus 1 percent for all US businesses.
“We expect pricing on most lines to be adjusted downward with a few exceptions such as commercial automobile/transportation risks and accounts with poor loss experience or other underwriting concerns,” said MarketScout CEO Richard Kerr in the company’s latest report. He warns that this line of pricing should be expected for the remainder of 2015.
An in-depth look at the numbers
In terms of coverage classification, the only change from August to September this year was for property exposures. This classifications saw a two-percentage point adjustment from plus 1 to minus 1 percent.
As for account size, only small to medium accounts held steady at flat. Large accounts were at minus 1 percent in September as opposed to being flat in August. Jumbo accounts, those over over $1 million, witnessed an even further downward adjustment coming in at minus 4 percent versus minus 3 in August.
Looking at rates by industry groups, all were down a percent in September, except for manufacturing and transportation. Manufacturing pricing remained flat while transportation was plus 2 percent.
A summary of the September 2015 rates by coverage, industry class and account size is set forth below.
A summary of the September 2015 rates by Coverage Class
|By Coverage Class||September||August|
|Commercial Property||Down 1%||Up 1%|
|Commercial Auto||Up 2%||Up 2%|
The September numbers by Account Size
|By Account Size||September||August|
|Small Accounts (Up to $25,000)||Flat||Flat|
|Medium Accounts ($25,001 – $250,000)||Flat||Flat|
|Large Accounts ($250,001 – $1 million)||Down 1%||Flat|
|Jumbo Accounts (Over $1 million)||Down 4%||Down 3%|
The September Numbers by Industry Class
|By Industry Class||September||August|
|Transportation||Up 2%||Up 2%|