Commercial insurance rates drop again in JulyPosted On: Aug. 5, 2016 12:00 AM CST
Commercial property/casualty insurance rates dropped 1% in July, matching declines in June, electronic insurance exchange MarketScout said Friday.
Workers compensation and property coverages were 2% lower, Dallas-based MarketScout said in a statement. Business interruption, business owners policies, fiduciary and directors and officers were 1% lower to flat, while professional liability rates moved from 1% to 2% lower.
Rates for all other coverages were unchanged.
By industry classification, rates for public entities moved to flat or no increase in July vs. down 1% in June, MarketScout said. Transportation accounts saw the largest rate increases to up 3% in July from up 1% in June.
Richard Kerr, MarketScout’s CEO, said in a statement that while insurers continue to grant minor rating concessions, many are pushing for an end to any further rate reductions.
“Transportation underwriters are increasing pricing on all but the very best accounts,” Mr. Kerr said. “The poor loss experience in transportation has prompted underwriters to demand rate increases and restrict underwriting appetite.”
Kerr continued, “For the first time in a while, we are hearing from insureds, mostly in the transportation industry for now, who are complaining about lack of cooperation from insurers as they try to manage their risk portfolio.”
Mr. Kerr said that business owners and corporate CEOs are concerned their insurance premiums will be larger than what was budgeted and affect net profits.
“These insureds would be well advised to allocate capital towards implementing loss control and companywide safety programs,” he said. “That is how they will get cooperation from their insurers.”