It's not a huge boost, but it's a start.
Dallas-based insurance distribution and underwriting company MarketScout recorded small rate increases in the majority of coverage and industry classifications. Notably, for the first time in 20 months, the composite rate index for commercial accounts in the U.S. measured a rate increase of plus 1 percent.
MarketScout CEO Richard Kerr summarized the plus 1 percent composite rate index as being driven by larger rate increases in commercial auto, transportation, professional and D&O rates.
Rates for business interruption, inland marine, workers' compensation, crime, and surety coverages held steady in the first quarter. Rates for all other coverages either moderated or increased.
By industry class, every industry experienced a move toward higher rates in Q1. Transportation had the largest rate increase at plus 5 percent.
The National Alliance for Insurance Education and Research conducted pricing surveys used in MarketScout's analysis of market conditions, further corroborating MarketScout's actual findings.
|Personal line rates increased 2 percent
Additionally, MarketScout reported that personal lines rates held steady in Q1 at an average increase of 2 percent.
MarketScout's findings on personal lines included the following: Homeowners valued under $1,000,000 were up 3 percent; homeowners valued over $1,000,000 were up 2 percent; automobile was up 3 percent; personal articles were up 1 percent.
"Insurers have done a good job forecasting losses, so premiums are relatively stable," said Kerr, who noted that homes under $1,000,000 saw rates increase 3 percent because they "produced a less attractive return on equity for insurers," while homes over $1,000,000 had rates increase by 2 percent due to their ties with high net worth clients "who tend to be a preferred class of insureds."
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Denny Jacob
Denny Jacob is an associate editor for NU PropertyCasualty360. Contact him at [email protected].
