05 Sep Commercial Rates Become More Competitive
Slowly but surely, the composite rate for US property and casualty insurance is closing in on
flat or no increases. According to Richard Kerr, CEO of MarketScout, “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.
Rates as measured by account size and industry classification remained the same as in July
August is traditionally a slower month for insurance placements so the volume of premium
measured is less than normal.