NU Online News Service, Dec. 06, 4:04 p.m. EST
Rates for U.S. property and casualty commercial insurance policies were down an average of 5 percent during November, a slight decrease from the last several months, which saw declines of 4 percent.
By coverage, general liability was down the most at minus-6 percent, followed by commercial property with a 5 percent average decline in November, according to MarketScout, which produces a monthly "Market Barometer."
Competition is increasing for accounts with a premium of $250,000 to $1 million. These large accounts are down 6 percent compared to down 5 percent in October.
"Insurers who traditionally focused on small guaranteed cost accounts are moving into the middle and larger market sectors to get a shot at larger accounts, which many insurance executives feel generate a higher profit margin for both insurers and intermediaries," said Richard Kerr, chief executive officer of MarketScout.
Last month, Mr. Kerr said the industry needs to "realize this pricing environment may be around for several more years."
Business owners, business interruption, inland marine and umbrella/excess coverages were each down 3 percent. Commercial auto and crime were down 2 percent in November, MarketScout reported.
By industry class, manufacturing and contracting were down 5 percent each.
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