In November 2012, the overall composite rate for insuring commercial accounts in the United States was up 5 percent as compared to November 2011, according to MarketScout’s Commercial and Personal Lines Market Barometers.

By coverage classification, property, excess liability, general liability and workers' compensation rates increased the most at plus-5 percent. By account size, all accounts under $1,000,000 premium were up 5 percent as compared to November 2011. Jumbo accounts over $1,000,000 premium were down from plus-2 percent in October to plus-3 percent in November. By industry class, manufacturing had the most significant month-on-month rate increase at plus-6 percent as compared to plus-4 percent the prior month. Transportation accounts were also up 6 percent.

"The manufacturing rate increase was surprising," said Richard Kerr, CEO of MarketScout. "Normally, manufacturing is a very stable industry class absent quick pricing changes. Going from plus-4 to plus-6 percent was unusual. As for transportation, the trucking segment of this industry class is what is really driving the rate increases for the class at plus-6 percent.”

Personal lines enjoyed a similarly strong month in November. The composite rate for insuring personal lines business in the United States increased to plus-4 percent for November 2012 as compared to November 2011.

"Homeowners placements for homes over $1,000,000, the 'high-net-worth' market, made a dramatic move in November," stated Richard Kerr, CEO of MarketScout. "Rates moved up from plus-2 percent in October to plus-5 percent in November. That is the largest month on month rate increase we have seen in the eleven years we have been tracking rates in the U.S. It appears insurers of high-value homes are adjusting rates upward to account for increased exposure to weather-related events. And some of the accounts are now being forced into the non-admitted market where rates are higher and coverages are frequently restricted."

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