Rates in US commercial rise by 1%
The composite rate for US property and casualty is closing in on flat or no increases, with a small increase of 1 percent for the month of August.
This is according to MarketScout, an insurance distribution and underwriting company, which added that August is traditionally a slower month for insurance placements so the volume of premium measured is less than normal.
Richard Kerr, chief executive officer of MarketScout, said: “Insurers really don’t want to enter another era of rate declines; but in order to hold business, most of the market is being forced to moderate pricing. If this trend continues, we should see annual rate declines very soon.”
“As measured by coverage classification, property rates were actually up slightly at plus 3 percent. Business interruption was down one percent to flat as were fiduciary and crime. Business owners’ policies and commercial auto moderated from plus 3 percent to plus 2 percent. Umbrella liability coverage moderated from plus 2 percent to plus 1 percent. Workers’ compensation rates were up from plus 1 percent to plus 2 percent,” said the report.
