Commercial property/casualty insurance rates increased an average of 3% in December compared with the same month a year earlier, Dallas-based MarketScout said Monday.
Commercial automobile experienced the greatest rate increase at 4%, while the fiduciary, surety and crime categories reported the smallest average increase of 1%, according to the electronic insurance exchange.
Among industries, transportation and contracting risks experienced the greatest increases at 5%; public entities were assessed the lowest rate increases at 2%.
By account size, small accounts, or those MarketScout defines as having premiums up to $25,000 a year, had the highest rate increases at 5%. The largest accounts experienced rate increases of only 1%.
“If you are in favor of significant rate increases in 2014, you may be disappointed sans a catastrophic event or some sort of new tort liability issue,” MarketScout CEO Richard Kerr said in a statement.
“Investors are clamoring for decent returns in instruments not directly connected to the stock market,” he said. “When this occurs, smart people come up with creative solutions to put these investor funds to work. Insurance-linked securities and new age reinsurance structures have opened the insurance market to many new investors and as a result, additional capacity. This added capacity may well put additional pressure on rates in 2014.”