Property/casualty insurance rates rose 5% in September: MarketScout
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September commercial property/casualty insurance rates rose an average of 5% in September compared with those during the same period a year earlier, Dallas-based electronic insurance exchange MarketScout reported Monday.
This compares with an average increase of 4% in August, according to MarketScout.
Commercial property and general liability coverages experienced the largest increases, rising 6%, while surety experienced the lowest at 1%.
By industry class, contractors experienced the highest rate increases, increasing 6%, followed by habitational, service and transportation accounts, which increased 5%.
Public entities had the smallest increase at 3%.
“There are several medium-sized publicly traded insurance companies who are encountering challenges in their ongoing business operations,” said MarketScout CEO Richard Kerr in a statement regarding the results. “These companies may be sold, restructured or placed into runoff unless they structure some creative solutions to get them past their current financial crisis. Very capable, smart insurance executives lead each of these firms. It just goes to show how quickly things can go wrong if an insurer experiences adverse loss development. Rates will increase if a few more companies experience similar deterioration.”
