Average rate increases for commercial and personal lines continued their slow ascent through August, rising an additional point over the prior month, says MarketScout.
The Dallas-based electronic exchange's P&C commercial-insurance market barometer puts the composite rate for U.S.-based commercial risks up 5 percent for August. Rates held steady at up 4 percent for the months of May, June and July of this year.
Commercial Property rates in the United States were up 7 percent in August—an acceleration from a 6 percent increase seen in July.
Workers' Compensation and General Liability rates were up 6 percent for the month. Rates for Directors and Officers Liability increased to up 4 percent from 3 percent in July. Employment Practices Liability insurance rates held steady, up by 3 percent.
But not all lines saw an uptick in rate increases in August. Commercial Auto rates slipped from up 5 percent in July to up 4 percent in August. Likewise, rates for Umbrella were up 3 percent in August after being up 4 percent in July.
By account size, rates for small and medium-sized accounts were up 5 percent; large accounts were up 4 percent; and jumbo accounts of more than $1 million were up 3 percent, says MarketScout.
From an industry-class perspective, rate increases in August were led by 6 percent hikes in manufacturing and contracting.
In personal lines, rates in August this year compared to August 2011 were up 3 percent—an increase from being up 2 percent in July.
Homeowners' insurance was up 3 percent in August, while Auto insurance rates were up 2 percent for the month.
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