US P&C rate increases slow to 5.8% in Q4: MarketScout
Property/casualty rates in the US rose by an aggregate 5.8% in the fourth quarter of 2021, down from a 6.8% rate in Q3, a composite price index by MarketScout showed.
Umbrella, D&O liability and commercial property led the gains, up by 11%, 10.3% and 8.3% respectively.
Laggards include workers’ comp, with no measurable gain, as well as fiduciary, crime and surety, posting rate increases of below 2%.
Every line of coverage except business owner policies had the same or lower increase in Q4 than in Q3, authors claimed.
By account size, variation was more muted. Small and medium accounts (premium to $250k) were listed with rate gains at or just above 5%; large and jumbo accounts at 6.7%. Medium accounts ($25k to $250k) were said to have moderated most after a 7.3% gain in Q3.
Rate increases also tempered for each of seven listed industry segments, falling furthest for 'habitational' to a 7% gain. Transport continues to show double digit gains at 10.3%.
Richard Kerr, CEO of MarketScout, noted: “The fourth quarter 2021 reflects moderation in rate increases. However, when comparing rates for the entirety of 2021, rates did increase from plus 5.6 percent in 2020 to plus 6.6 percent in 2021.”
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