Commercial insurance rates fall 2% in OctoberReprints
The composite rate for commercial insurance business was down 2% from September to October, which marks the first time this year rates were down compared with the previous month, according to a report issued Friday by MarketScout.
Rates for June, July, August and September were down 1%, the Dallas-based electronic insurance exchange said.
MarketScout CEO Richard Kerr said in a statement, “The composite rate includes all lines of commercial business. Insureds and brokers should carefully examine the rates for coverage and/or industry classifications that are germane to their placements.”
Based on coverage class, commercial property and general liability rates were down 2% from September to October, while business owners policies, inland marine, umbrella/excess and workers compensation lines were down 1%, according to the report.
Flat rates were reported for business interruption, directors & officers liability, fiduciary and surety lines last month. There were 1% increases for employment practices liability and crime, and a 2% increase for commercial auto, MarketScout said.
There were uneven results based on account size. Rates for small accounts of up to $25,000 in premium were down 1% from September to October; medium accounts of $25,001 to $250,000 were down 2%; large accounts of $250,000 to $1 million were down 1% and jumbo accounts of more than $1 million were down 2%.
By industry class, rates for contracting and service firms were down 2% from September to October; manufacturing, habitational and energy firms were down 1%; public entities were flat and transportation firms were up by 3%, according to the report.