Commercial prices continue to increase in Q1: MarketScout

Commercial insurance rates continue to rise as the composite rate increase for the first quarter of 2022 was 6%, compared with 5.8% for the fourth quarter of 2021, according to insurance exchange MarketScout Corp. on Tuesday.

While rates in January and February were consistent with the last quarter of 2021, rates did start to move up even more in March 2022, “which could be the beginning of stronger increases for the next several quarters,” said Richard Kerr, CEO of MarketScout.

Aggressive rate increases in the first quarter included 19.7% for cyber, 9.7% for umbrella and excess, and 8.7% for directors and officers liability.

Commercial property was up 7.6%, business interruption up 6.3% and commercial auto up 7.3%.

Among smaller increases, workers compensation was up only 1% and crime and surety were each up 1.3%.

Rates for large and jumbo accounts were steady at an increase of 6.7% while small and medium-size account rates moved up 5.3% and 6.3%, respectively.

By industry class, transportation led the increases up 10.3% with habitational next up 8% and then contracting up 6%.

Founded in 2000, MarketScout is an insurance distribution and underwriting company headquartered in Dallas. The company is a Lloyd’s coverholder and MGA for U.S. insurers.