August property/casualty insurance rates up slightly: MarketScout

Commercial property/casualty insurance rates rose an average of 1% in August, Dallas-based electronic insurance exchange MarketScout reported Friday.

Commercial property rates increased the most at 3%, while businessowners' policies, commercial automobile, general liability, professional liability and workers compensation each posted 2% increases. But rates for business interruption, crime and fiduciary coverages remained flat compared to rates of the same month in 2013.

Among industry classes, contracting and transportation accounts experienced the largest rate increases at a 3% increase while public entities reported the lowest at 1%.

“Insurers really don't want to enter another era of rate declines; but in order to hold business, most of the market is being forced to moderate pricing,” said MarketScout CEO Richard Kerr in a statement accompanying Friday's report. “If this trend continues, we should see annual rate declines very soon.”

MarketScout noted in its report that August is traditionally a slower month for insurance placements so the volume of premium measured is less than normal for other months.