Our monthly look at the U.S. Commercial Lines Rate trends courtesy of MarketScout
P&C risks are down two percent in May according to the most recent data from MarketScout. The Dallas-based insurance exchange tracks the monthly composite rate index by analyzing pricing surveys from The National Alliance for Insurance Education and Research.
In commenting on the May results, MarketScout CEO Richard Kerr noted that, “The market was stable in May with small movements in coverage, industry, and size classifications. As we have seen in the past, larger premium accounts were priced more aggressively. Overall, the composite rate was down 2 percent in May, matching the rate for April.”
MarkeScout also noted the following:
- By coverage classification, rates for property, business interruption, professional, auto, D&O, and surety all moderated 1 percent compared to April. Crime coverage increased from flat to plus 1 percent.
- As measured by premium volume, accounts over $250,000 were priced slightly more aggressive in May at minus 3 percent compared to minus 2 percent in April. All other account sizes remained unchanged.
- Industry classifications are examined to determine rate movement as measured when grouping accounts according to their SIC codes. SIC codes are then amalgamated into seven different segments. The only changes in rates in May versus April were in habitational, which moderated from minus 3 percent to minus 2 percent, and energy, which was priced a bit more aggressively at minus 2 percent compared to minus 3 percent. All other industry classifications were unchanged compared to the prior month.
A summary of the May 2016 rates by coverage, industry class and account size is set forth below.
May 2016 rates by Coverage Class
| By Coverage Class | May |
| Commercial Property | Down 2% |
| Business Interruption | Down 1% |
| BOP | Down 2% |
| Inland Marine | Down 1% |
| General Liability | Flat |
| Umbrella/Excess | Down 2% |
| Commercial Auto | Flat |
| Workers’ Compensation | Down 1% |
| Professional Liability | Down 3% |
| D&O Liability | Down 1% |
| EPLI | Flat |
| Fiduciary | Down 1% |
| Crime | Up 1% |
| Surety | Flat |
The May numbers by Account Size
| By Account Size | May |
| Small Accounts (Up to $25,000) | Down 1% |
| Medium Accounts ($25,001 – $250,000) | Down 2% |
| Large Accounts ($250,001 – $1 million) | Down 3% |
| Jumbo Accounts (Over $1 million) | Down 3% |
The May Numbers by Industry Class
| By Industry Class | May |
| Manufacturing | Down 3% |
| Contracting | Down 2% |
| Service | Down 2% |
| Habitational | Down 2% |
| Public Entity | Down 2% |
| Transportation | Down 2% |
| Energy | Down 3% |
