US commercial insurance rates on the upswing: MarketScout
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The composite rate for property/casualty insurance in the United States rose 1% in the second quarter of 2017, continuing the upward trend that began in the first quarter of the year, MarketScout said Thursday.
Commercial property and inland marine adjusted to up 1% in the second quarter of this year from down 1% in the first quarter of 2017, the Dallas-based insurance exchanged said in a statement. Commercial auto rates increased to up 4% from up 3%, while employment practices liability insurance rates increased to up 2% from up 1%.
Fiduciary adjusted downward to flat or no increase compared with up 1% in the prior quarter. All other coverage classifications were unchanged from the prior quarter, MarketScout said.
“We now have two consecutive quarters of composite rate premium increases. Insurers are adjusting pricing as they should based upon losses incurred, expense loads and targeted returns on equity,” MarketScout CEO Richard Kerr said in the statement.
Small accounts, defined as those under $25,000 premium, increased to up 2% from up 1%. Medium accounts of $25,001 to $250,000 increased to up 1% from flat. Large accounts, referring to those of $250,001 to $1 million, were unchanged; and jumbo accounts of over $1 million were down 1% compared with down 2% the prior quarter.
By industry class, public entity rates moderated to flat from up 1%. Transportation risks experienced slightly lower rate increases, with second-quarter rates up 4% compared with 5% in the first quarter.
Professional liability and director and officers liability were both up 2% in the second quarter, MarketScout said.
On Wednesday, insurance exchange IVANS reported that nearly all major commercial insurance lines saw renewal rate increases in the second quarter.
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