The commercial insurance composite rates barely matched year-end 2013 at plus-3 percent, while personal lines rates decreased in January from plus-3 percent to plus-2 percent, according to the MarketScout barometer.

“Rates for five coverage classes declined 1 percent as compared to one year ago,” said Richard Kerr, CEO of MarketScout. “No coverage classifications had a rate increase. By account size, half the accounts measured enjoyed premium reductions of 1 percent. By industry class, four out of seven were down 1 percent. If we were to post rate changes by fractional increments, you would see the actual increase at 2.55 percent, so the moderation trend continues.”

Automobile and personal articles floaters were both at plus-2 percent, a slight reduction for personal articles and the same rate for automobile.

January 2014 rates by coverage class:

Commercial Property

Up 2 percent

Business Interruption

Up 2 percent

BOP

Up 3 percent

Inland Marine

Up 1 percent

General Liability

Up 3 percent

Umbrella/Excess

Up 3 percent

Commercial Auto

Up 4 percent

Workers’ Compensation

Up 4 percent

Professional Liability

Up 2 percent

D&O Liability

Up 2 percent

EPLI

Up 1 percent

Fiduciary

Up 1 percent

Crime

Up 1 percent

Surety

Up 1 percent

 

January 2014 rates by account size:

Small Accounts

Up 4 percent

(Up to $25,000)

 

Medium Accounts

Up 3 percent

($25,001 – $250,000)

 

Large Accounts

Up 2 percent

($250,001 – $1 million)

 

Jumbo Accounts

Up 1 percent

(Over $1 million)

“2013 was a good year for personal lines insurers,” Kerr said. “We expect continued aggressive pricing, but that will be geographically modified as appropriate. Coastal homeowners continue to enjoy competitive rates because of the lack of windstorm activity in 2013, despite Superstorm Sandy.”

Homes valued at less than $1,000,000 were assessed a 2 percent increase; high value homes, those valued at more than $1,000,000, paid an additional 4 percent. Both metrics were down 1 percentage point from December 2013, according to the report.

January 2013 personal lines rates:

Homeowners under $1,000,000 value

Up 2 percent

Homeowners over $1,000,000 value

Up 4 percent

Automobile

Up 2 percent

Personal Articles

Up 2 percent

MarketScout's analysis of market conditions is based on pricing surveys conducted by the National Alliance for Insurance Education and Research, which are used to corroborate MarketScout's findings, which are mathematically driven by new and renewal placements across the United States.

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