Commercial insurance rate hikes accelerate
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U.S. commercial insurance rates increased by an average of 3% in the second quarter of 2019, up from 2% in the first quarter, according MarketScout Corp.
Commercial auto insurance rates increased the most in the second quarter at 6%. The only line that showed a decrease was workers compensation, where rates fell 1.5%, according to MarketScout, which is a Dallas-based managing general agent and operates an online insurance exchange.
Rates for commercial property insurance increased 3.5% in the second quarter, business interruption and general liability increased 3%, umbrella and excess liability and professional liability rates increased 2.5%, and directors and officers liability rates increased 2%.
“Property risks in California and Florida are getting hit hard with rate increases,” Richard Kerr, CEO of MarketScout, said in a statement Friday. “We expect this trend to accelerate as we move into the wind and brush fire seasons later this year.”
By account size, rates for accounts with more than $1 million in premium increased by 2% on average in the second quarter, and all other accounts saw 3% average increases, according to the report.
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