Property/casualty insurance rates in the United States declined an average of 4% in April when compared with the same period in 2010, notes
The largest price reductions went insurers’ largest customers. In fact, insurance buyers with accounts between $250,000 and $1 million renewed their insurance contracts with prices that were 5% lower in April compared with the same month last year. Medium-size accounts between $25,000 and $250,000 declined an average of 3%, notes MarketScout. Comparatively, in April, accounts up to $25,000 renewed insurance contracts at rates that were only 1% lower from the previous year.
The pace of decline in the “market continues to moderate,” MarketScout CEO Richard Kerr said in a statement.
MarketScout’s report noted that the discounts insurers gave to their large customers were the deciding factor; without those, rates would have declined 3% overall in April year-over-year, MarketScout said.
Of all the commercial accounts listed, MarketScout notes the manufacturing industry experiencing 5% lower rates for insurance in April compared with a year ago. Public entities experienced rates that were 1% lower.
Property/casualty rates may have declined, notes MarketScout, but professional liability, employment practices liability and workers¹ compensation coverage had no change in rates compared with March.
Rates on general liability insurance coverage declined an average of 4% in April year-over-year, more than many other lines of insurance tracked by MarketScout.
Kerr adds a note for next year: “We don¹t know what¹s going to happen, but all signs are (the market will) continue to moderate.”
