Commercial insurance rates up 1% in third quarter
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Composite commercial insurance rates increased an average of 1% during the third quarter of 2017, insurance exchange MarketScout reported Thursday.
Effects on rates from the recent string of hurricanes will likely be seen in the fourth quarter, Dallas-based MarketScout said in a statement.
By coverage line, only commercial auto rates were up, to 5% from 4% in the previous quarter, while inland marine, professional liability, directors and officers, employment practices liability, crime and surety rates slipped by 1%, with rates for other coverages flat.
Accounts over $250,000 saw rate swings from down 1% to flat, but there was no change in rates for accounts under $250,000, MarketScout said.
By sector, manufacturing, contracting, service, public entity and transportation saw a 1% rate increase on average, led by transportation, which rose 5% percent. Rates for energy accounts went from up 1% percent to flat, while rates for all other groups remained unchanged, according to MarketScout.
“Rates are trading on a quarter-to-quarter basis in a very tight range. The market seems to be seeking a direction but with no real impetus, except for the property market, to go one way or the other. The recent hurricanes have not impacted property rates for the third quarter; however, adjustments in property rates will be recognized in the fourth quarter of 2017,” Richard Kerr, CEO of MarketScout, said in the statement.
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