Compared to a year ago, the composite rate for commercial property/casualty and professional lines coverage increased 3 percent in April 2012, according to new research from MarketScout, an insurance distribution and underwriting company. At 4 percent, workers’ compensation and property coverage rates increased the most, matching the March 2012 rate. Business-owner policy, general liability and D&O rates increased slightly from March to April.
“Each industry and coverage class we monitor includes placements with both admitted and non-admitted insurers,” said Richard Kerr, CEO of MarketScout. “Recently, we have noticed admitted and non-admitted insurers are pricing similarly.
“Historically, there has been a considerable difference in the underwriting approaches among the various types of insurers. The recent similar pricing strategies could ultimately lead to more business for the non-admitted insurers as admitted insurers begin to restrict their risk appetite and simply decline to write tougher accounts,” he added.
Pricing surveys for the analysis of market conditions were conducted by the National Alliance for Insurance Education and Research. The surveys help corroborate MarketScout's findings, which are mathematically driven by new and renewal placements.
|Commercial Property ||4%|
|Business Interruption ||1%|
|Inland Marine ||2%|
|General Liability ||3%|
|Commercial Auto ||2%|
|Workers’ Compensation ||4%|
|Professional Liability ||2%|
|D&O Liability ||2%|
|Small Accounts (Up to $25,000) ||3%|
|Large Accounts ($250,001 – $1 million) ||3%|
|Jumbo Accounts (Over $1 million) ||2%|
|Industry Class ||Change|
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