Commercial property/casualty insurance rates rose an average of 3% in May compared with those of the same month a year earlier, MarketScout reported Thursday.
The Dallas-based electronic insurance exchange found that transportation accounts experienced the greatest rate increase at an average of 4%, while public entities reported the smallest at 1%.
Among business classes, commercial automobile, commercial property, general liability and workers compensation all experienced average increases of 3%, while business interruption, crime, fiduciary and surety reported 1% increases.
As has typically been the case, the smaller the account, the greater the increase, with the smallest accounts reporting 3% increases in May while the largest reported only 1% hikes.
In its report, MarketScout noted that rates had risen by an average of 2% in April over those of a year earlier. In a statement, MarketScout CEO Richard Kerr said that the slight acceleration of rate increases in May was “somewhat of a surprise.”
“Market sentiment supports rate moderation,” said Mr. Kerr. “However, as we all know, trends bump along before establishing a true direction. Over time, a trend will be established.”