Property/casualty insurance rates up 3% in April: MarketScout

The composite rate for commercial property/casualty and professional lines coverage increased an average of 3% in April 2012 compared with the same month a year ago, MarketScout said Friday.

The Dallas-based electronic insurance exchange found that workers compensation and commercial property experienced the greatest rate increases at 4% each, while business owners policy and general liability rates each rose 3%.

The price increases were uniform by industry classes, with the manufacturing, contracting, service, transportation and energy sectors all seeing rates rise by 3%.

Richard Kerr, CEO of MarketScout, said the results may foretell a coming uptick in business for nonadmitted insurers. “Recently, we have noticed admitted and nonadmitted insurers are pricing similarly,” Mr. Kerr said in a statement. “Historically, there has been a considerable difference in the underwriting approaches among the various types of insurers. The recent similar pricing strategies could ultimately lead to more business for the nonadmitted insurers as admitted insurers begin to restrict their risk appetite and simply decline to write tougher accounts.”