Commercial P&C insurance rates continue upward trajectory
The Q1 2021 averages were likely pulled up by large spikes in certain lines, including umbrella and professional liability.
During the first quarter of 2021, commercial property & casualty rates saw an overall gain of 7%, according to MarketScout Corp., which reported umbrella, professional liability and D&O all saw double-digit increases.
Commercial property rates slightly outpaced the overall market, growing 8.6% during the period, the distribution and underwriting company reported. However, the market’s size and spread of placements across the U.S. held the composite rate down, according to Richard Ker, MarketScout CEO.
“In CAT prone areas, rates were up significantly more than the composite rate of 8.6 percent,” Kerr said in a release. “We expect rate increases to continue for the remainder of 2021.”
Rates up across all lines
Further, no lines saw rate decreases during the quarter, according to MarketScout, with workers’ comp and surety seeing the smallest increases at 1.7% each. Also showing more modest gains were crime and fiduciary, which each increased less than 3% during the quarter. All other lines grew at a rate of 4% or more.
By trade class, transportation and commercial residential property saw the largest premium growth at 11.7% and 9.3%, respectively. Manufacturing, service and energy all saw gains of 6.3%, while premiums for the contracting industry rose 6.7%.
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