Property/casualty insurance rates up 5% in March: MarketScout
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Commercial property/casualty insurance rates increased an average 5% in March over those of a year before, Dallas-based electronic insurance exchange MarketScout reported Friday.
Commercial property, umbrella/excess, commercial automobile and workers compensation all experienced 5% rate increases, while employment practices liability and surety experienced the smallest increases at 2%.
Among industry classes, manufacturing accounts reported the largest average increase at 7%, while public entities and energy accounts reported the smallest increases at 4%.
“Historically, underwriters have been very aggressive in pricing name-brand or large accounts,” MarketScout CEO Richard Kerr said in a statement. “In March, underwriters more frequently assessed an appropriate premium for large accounts.”
“Our most recent data showed a significant reversal in pricing strategy for both large ($250,001 to $1 million premium) and jumbo (over $1 million premium) accounts,” Mr. Kerr said. “In February, rate increases for large accounts measured plus 3% and for jumbo account plus 2%. These increases adjusted to plus 5% for both in March.”
