Most commercial insurance rates slip, but auto cover costs rise
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Commercial insurance renewal rates edged down 1% in November as the soft market continued, but some lines, notably commercial auto, saw increases, according to the latest report from insurance exchange MarketScout.
Overall commercial lines rate decreases moderated slightly from the 2% decrease in October, MarketScout reported Monday. However, commercial auto rates increased 3% for renewals completed last month.
“Underwriters have long struggled with commercial auto, many writing the coverage only to capture the related casualty lines, such as workers compensation, general liability and excess. Many insurers consider commercial auto as a loss leader,” Richard Kerr, CEO of Dallas-based MarketScout, said in a statement.
Other coverage lines that saw increases include professional liability, directors and officers liability and employment practices liability, which all saw 1% increases in November.
Among other major coverage lines, commercial property rates decreased 3%, general liability was down 2%, and workers comp was down 1%.
By industry sector, transportation saw a 3% increase in commercial insurance rates, while all other sectors were either flat or down slightly.
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