Commercial insurance rates see moderate increase in Q1 2023
A report from MarketScout breaks down which industries and lines saw the largest rate increases to start 2023.
Commercial property and casualty composite rates increased by a moderate 5% in the first quarter of 2023, according to a report from MarketScout.
By account size, only those with large account premiums ($250,000 to $1 million) saw a year-over-year increase, rising from +4% in Q1 2022 to +4.7% in Q1 2023. Small accounts (up to $25,000) were +4%, medium accounts ($25,001 to $250,000) were +3.7% and jumbo accounts (over $1 million) were +4% in the first quarter of 2023.
“It’s not surprising to see rates holding steady in the first quarter,” says Richard Kerr, CEO of Novatae Risk Group, is quoted in the report. “We will get a better measure of overall composite rates for 2023 in the next two quarters.”
By industry, transportation was the only group that saw a quarter-over-quarter rate increase; from +7.3% in Q4 2022 to +8% in Q1 2023.
Commercial lines that saw the largest premium increases in Q1 2023 were property (+9.3%), auto (+7.3%), umbrella/excess (+5%), professional liability (+5%) and business interruption (+4.7%). Coverages that saw the lowest increases were workers’ compensation (0%), surety (+1%), crime (+1%) and fiduciary (+2%).