Steady Rate Increase Continues Says MarketScout
In our monthly look at the commercial insurance rates in the United States, May saw the average composite rate for property and casualty insurance placements rise another five percent. This will be the third month in a row showing a five percent increase in rates.
“The commercial P&C market in the U.S. is continuing its steady trend of rate increases. There is ample capacity but underwriters continue to increase rates as appropriate,” commented Richard Kerr, the CEO of MarketScout.
By industry and classification, both manufacturing and public entities saw a small premium decrease from the April 2013 numbers. Transportation accounts, however, saw an increase in premium. As for rates increases by coverage classification, BOP policies, crime and fiduciary classes were slightly less expensive than in April 2013 as well. D&O, general liability and EPLI policies, however, all saw an increase in their rates based on a month-to-month comparison with earlier figures.
A look at this month’s numbers
|By Coverage Class||Rate Increase|
|Commercial Property||Up 6%|
|Business Interruption||Up 3%|
|Inland Marine||Up 3%|
|General Liability||Up 6%|
|Commercial Auto||up 5%|
|Workers’ Compensation||Up 6%|
|Professional Liability||Up 3%|
|D&O Liability||Up 4%|
|By Account Size||Rate Increase|
Up to $25,000
$25,001 – $250,000
$250,0001 – $1 million
Over $1 million
|By Industry Class||Rate Increase|
|Public Entity||Up 3%|