In November, commercial insurance composite rates matched those of the previous month, at plus-4 percent, while personal lines rates increased plus-3 percent compared to last year, according to the MarketScout barometer.
“The market is still on an upward trajectory but rate increases are slowing,” said Richard Kerr, CEO of MarketScout. “The only rate increases by coverage classification were small commercial policies and general liability coverages, which both increased from plus-3 percent to plus-4 percent. The general liability increase was possibly an adjustment from the unusually large percentage rate reduction in October. By industry, manufacturing rates moved up from plus-4 percent to plus-5 percent. Jumbo accounts over $1,000,000 premium were up from plus-2 percent to plus-3 percent.”
Umbrella liability, automobile, and crime coverages moderated by 1 percent in November. Medium-size accounts declined to plus 4 percent from plus 5 percent. On average, transportation accounts paid plus-4 percent in November, compared to plus-5 percent in October.
November 2013 rates by coverage class:
Commercial Property | Up 4 percent |
Business Interruption | Up 3 percent |
BOP | Up 4 percent |
Inland Marine | Up 2 percent |
General Liability | Up 4 percent |
Umbrella/Excess | Up 3 percent |
Commercial Auto | Up 5 percent |
Workers’ Compensation | Up 4 percent |
Professional Liability | Up 3 percent |
D&O Liability | Up 2 percent |
EPLI | Up 2 percent |
Fiduciary | Up 3 percent |
Crime | Up 1 percent |
Surety | Up 1 percent |
November 2013 rates by account size:
Small Accounts | Up 4 percent |
Up to $25,000 | |
Medium Accounts | Up 4 percent |
$25,001 $250,000 | |
Large Accounts | Up 4 percent |
$250,001 $1 million | |
Jumbo Accounts | Up 3 percent |
Over $1 million | |
On average, personal lines rates increased plus-3 percent compared to last year, MarketScout said.
“With hurricane season in the rear view mirror, U.S. personal lines insurers are anticipating strong earnings for 2013,” Kerr said. “If insurers’ profits are tallied as anticipated, we expect lower rates in 2014.”
For dwellings valued at less than $1,000,000, homeowners’ rates were adjusted downward to plus-2 percent, compared to plus-3 percent in October. For homes valued at more than $1,000,000, homeowners’ rates held steady at an increase of plus-5 percent. Auto insurance increased slightly to plus-3 percent from plus-2 percent and personal articles held steady at plus-2 percent, MarketScout said.
November 2013 personal lines rates:
Homeowners under $1,000,000 value | Up 2 percent |
Homeowners over $1,000,000 value | Up 5 percent |
Automobile | Up 3 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.
