Commercial insurance rate growth steady at 5% in Q2: MarketScout

Commercial P&C insurance rate growth held steady at an average 5% annual pace in the second quarter of 2023, but with 10 of 15 coverage classes accelerating from Q1, including notable gains for commercial property, inland marine, general liability and umbrella/excess, a quarterly pricing survey from  MarketScout has indicated.

Commercial property rates returned to double digit growth at 10.7% in the second quarter, up from 9.3% annual growth in Q1.

For general liability, umbrella/excess and inland marine, up 7.0, 7.0 and 5.0% respectively, the second quarter acceleration mostly worked to offset an easing to below-trend growth rates seen in Q1.

For general liability and inland marine, the Q2 rebound put rate growth visibly above mid-term trend. They join commercial property as the only coverage classes with accelerated rate growth versus the year prior period.

Cyber rate growth of 13.3% is down for the third quarter running from the peak of 23% annual rate growth seen in Q3 2022.

Elsewhere, rates for business interruption returned to 6.0% growth after two quarters of respite, professional liability eased mildly to 4.7% growth and D&O liability grew 4.7%, up fractionally from the prior quarter, but well down from prior growth rates.

While the commercial headline aggregate was called flat at 5%, MarketScout attributed notable acceleration to rate across all account sizes, running from the 0.7 percentage point (pps) increase for jumbo accounts to the 2.3 pps gain for medium accounts.

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